Ep. 61 Surprise: Krugman’s Concerned about the Debt Again

20 November 2016     |     Tom Woods     |     5

Well, well, well: guess who’s suddenly worried about the deficit and the debt! After just telling us that increasing the debt in any way for any reason would be a good thing, to boot!

Krugman Column

Trump Slump Coming?” (November 14, 2016)

What Krugman Once Said

Debt Is Good” (August 21, 2015)
The Long-Run Cop-Out” (February 2, 2015)

For Reference

Trump Versus Clinton On Infrastructure,” by Wilbur Ross & Peter Navarro
Stop Bleating About Crumbling Infrastructure,” by David Stockman

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  • https://www.facebook.com/david.rogers.hunt David_Rogers_Hunt

    Progressives will now rediscover that war is bad… LMAF!!

  • Nonlinear Sandwich

    Dr. Murphy did not say “by the same token” or “per se”, but now Dr. Woods is working “juicy” and “juicier” to death. At least he sounds happy. And of course, there will be another cruise. I wish it would be Seattle to Alaska. But these guys are Easterners.

  • Manius

    If this doesn’t convince someone that Krugman is just another political hack, nothing will.

  • http://tklist.us TKList

    Big government is owned by the wealthy and paid for by the middle class and poor one way or another. The tax code is manipulated by the wealthy; cost to comply is paid by consumers through higher prices. It increases lobbyists, corrupts politicians and increases difficulty of entry for competition, which causes less employment opportunities for workers and higher prices.

    Excessive regulation increases cost for consumers, decreases job opportunities, corrupts politicians, increases lobbyists and increases difficulty of entry for competition. National debt: $154,000 cost per household paid by the consumer not the rich, through higher prices or lower standard of living. Federal Reserve: low interest loans for wealthy and connected, by the time it reaches lower rungs, rates higher, prices higher, including CEO pay – increasing the inequality gap.

    We have more socialism now than the liberal left’s golden age of the 1950s. We have the FHA, HUD, Freddie Mac and Fannie Mae, Community Reinvestment Act, Social Security, Medicare, Student Loan Programs, Obamacare/ACA, Snap Program, Earned Income Tax Credit, Unemployment Insurance Program and more. So the theory is false and the opposite is true. Socialism hurts the middle class. Big government equals more income inequality, smaller government equals less income inequality.

    The national debt keeps increasing because of deals, aka compromises, between Democrats (social programs and entitlements) and Republicans (corporate welfare and defense). The middle class pays the heaviest burden for the debt; as it goes up, it further increases the inequality gap by lowering their standard of living. National Debt: $19 trillion costs or is financed by each household, who is ultimately responsible for that debt. This comes out to $154,000 per household if paid for in one lump sum. Financed for 15 years at 5% interest it would take a monthly payment of $1218. Do not be fooled each household pays this one way or another, not the rich; whether you pay it directly in taxes and fees, higher prices or by a lower standard of living than you would otherwise have if the government had not spent that money. That is on top of around $26,000 per household for the yearly federal spending. Which is a another $2166 per month. Total $3400 per month per household. The question is: Is your household getting its money’s worth?

    Politicians promise you a fantasy land, that they can make your life golden by decree, raise your pay, give you free education, free health care, paid retirement, cheap housing, easy credit and protect you from the evils of the greedy businessman. In reality they can do nothing of the sort.

    To give you anything they have to take something from you, do not be fooled when they say they will take it from the rich, the rich get it from you (increased prices), in the end it always comes from you. Politicians point at the rich guy as they pick your pocket. They are selling you an illusion that does more harm than good, because in the process they disrupt the free flow and balance of the market causing unintended consequences.

    Politicians that promise to fix your life by taxing the greedy rich to cover the cost are really the sleaziest of middlemen that are selling you pixie dust while they take their cut, which is power.

  • David Arum

    Krugman is somewhat left adrift by Trump’s election.