POLITICAL observations & opinions

* Paul Krugman: Austerity Is So Wrong! … The best way to avoid a long term debt crisis is through economic growth. Austerity is going to make things worse, not better … LMW: Krugman is so correct!

Posted by Lew Weinstein on May 6, 2012



In a new book, End This Depression Now!, Nobel Prize–winning economist Paul Krugman says the current economic problems can be fixed both more easily and more quickly than anyone imagines. But politicians’ desire to slash spending is deeply destructive, and he details why austerity is so appealing even to Very Serious People—and why it’s such a bad idea.

Paul Krugman is the recipient of the 2008 Nobel Prize in Economics. He is a best-selling author, columnist, and blogger for the New York Times, and is a professor of economics and international affairs at Princeton University.

excerpts from an amazon reader comment …

  • the book is very readable and accessible; Krugman is skilled at using descriptive narrative and analogies while avoiding technical jargon.
  • The most important aspect of the book is its focus on the on-going jobs crisis.
  • Krugman clearly understands that access to a good job and decent wagesare the most important gauge of prosperity.
    • The book does a great job of highlighting the devastating human costs of the current unemployment crisis, especially for younger people who are just entering the job market and are unfortunately likely to feel the impact not just in the short term, but throughout their entire careers.
  • Krugman shows how a lack of demand for products and services is keeping us in the current depression and may ultimately cost us at least $5 Trillion (and perhaps much more) in lost productive output and earnings.
  • he looks at how soaring income inequality resulted in policies such as excessive deregulation of the financial industry that directly led to the crisis.
  • Krugman argues effectively that the stimulus was insufficientand that we need
    • more spending on infrastructure
    • more action by the Fed and revised rules to make it easier for homeowners to take advantage of low mortgage rates.



Krugman is so correct. He cites the relevant data. Only the partisan Republicans who oppose everything Obama has done or wants to do don’t understand that.



3 Responses to “* Paul Krugman: Austerity Is So Wrong! … The best way to avoid a long term debt crisis is through economic growth. Austerity is going to make things worse, not better … LMW: Krugman is so correct!”

  1. Chris said

    How much more debt should the U.S. take on? Is taking on more debt so political leaders can give it to their friends and donors for personal benefit good for the U.S.?

    • Lew Weinstein said

      There is waste, but there is much that is good. For instance, help to states to keep police, teachers and firemen employed. It is the Bush tax cuts and wars of choice that brought us to this place.

      • Chris said

        Well surprise here; I do not support federal grants and moneys going to pay for local public services. The local community should determine the level of services they wish and they should pay for it . Pick any agency at any level and you will find the current level of waste is staggering!! So if Bush was the problem why have the Dems not turned all those Bush problems around? So how much should we continue to borrow? We have borrowed more money than you or I or our children will pay back. So more? We need to borrow More money? This is the solution?

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