Paul Krugman- Republicans Hate America

[Winehole23]

The real problem is our standard of living is too high compared to how much money we make. That's why we buy everything on credit and then default on the debt. The Fed's response for the past 30 years has been to cut interest rates effectively putting more money into the economy to cover up this fact and ensure there was plenty of credit to go around. Now that we've run out of interest rates to cut we're just going to make money the old fashion way--by printing it.

The country needs a recession to get back to some sort of balance. Too bad we've put it off for so long that now its going to be much worse than it would have been in the past. Even if this measure does what its intended to do its only going to prolong the inevitable.

I feel your anger, angrydude, and I largely agree with your take. Too little real wealth supports too much debt. Restoring the status quo ante in credit or consumption means restoring the imbalance that made us vulnerable to financial meltdown in the first place.

For some reason, it's considered beyond the pale to suggest that deflation might be our friend. And why it's taken as an article of faith that only fiscal medicine will save us is beyond me.

[Aggie Hoopsfan]

The real problem is our standard of living is too high compared to how much money we make. That's why we buy everything on credit and then default on the debt. The Fed's response for the past 30 years has been to cut interest rates effectively putting more money into the economy to cover up this fact and ensure there was plenty of credit to go around. Now that we've run out of interest rates to cut we're just going to make money the old fashion way--by printing it.

The country needs a recession to get back to some sort of balance. Too bad we've put it off for so long that now its going to be much worse than it would have been in the past. Even if this measure does what its intended to do its only going to prolong the inevitable.

Good take, rookie.

Everything going on in D.C. just pisses me off more with each passing day. We need a recession, , we probably need a depression, to get out of this financial funk.

But the POS politicians won't let it happen because they're more worried about staying in office than doing the right thing, so they come up with bailouts and have the Treasury print more dollars to try and spend the country's way out of the recession.

Sadly, we're at the point this is just going to make it more painful in the long run. People need to live within their means. Just because you're an American doesn't mean you're en led to a new iPod every six months, plasmas or LCDs in every room in the house, high speed internet, and a 200K mcmansion (oh, and new cars every 2-3 years).

Damn.

[Warlord23]

Good take, rookie.

Everything going on in D.C. just pisses me off more with each passing day. We need a recession, , we probably need a depression, to get out of this financial funk.

But the POS politicians won't let it happen because they're more worried about staying in office than doing the right thing, so they come up with bailouts and have the Treasury print more dollars to try and spend the country's way out of the recession.

Sadly, we're at the point this is just going to make it more painful in the long run. People need to live within their means. Just because you're an American doesn't mean you're en led to a new iPod every six months, plasmas or LCDs in every room in the house, high speed internet, and a 200K mcmansion (oh, and new cars every 2-3 years).

Damn.

For once, I completely agree with your take. This country needs a good recession to eliminate all the bad fiscal habits that both individuals and corporations have been accustomed to.

On the topic of Republicans hating America, it's not that they hate the country, they are just stupid. Stupid enough to think that just because the GOP claims it is conservative, it actually has been fiscally conservative. Republican administrations have outspent Democratic ones consistently in recent history. Reagan racked up a huge deficit, Bush Sr. did nothing to help, Clinton actually turned it around by reducing public debt and putting up a surplus, and Bush screwed the pooch again by spending like a drunken sailor.

Republican presidents have always taken the short-sighted route by spending big, pussing out on regulation, cutting taxes without a clear plan and finally letting somebody else pick up the tab. Reaganomics resulted in massive deficits, the Savings & Loan crisis and the 87 stock market crash. Bush Jr. leaves us with a banking system on life support, a housing crash, a stock market crash, and oh yeah, massive deficits.

History repeats itself, but Republicans won't learn.

[mogrovejo]

First, you're going to get huge tax cuts and stimulus checks under Obama.

Second, I'm sorry you don't want to face the reality that the Govt. has to inject money into the system, propose something better or build a time machine.

Tax cuts like those are fake, those taxes are just being postponed. It's merely taxing the unborns. If the spending is not cut, someone will have to pay the bill.

[mogrovejo]

Good take, rookie.

Everything going on in D.C. just pisses me off more with each passing day. We need a recession, , we probably need a depression, to get out of this financial funk.

But the POS politicians won't let it happen because they're more worried about staying in office than doing the right thing, so they come up with bailouts and have the Treasury print more dollars to try and spend the country's way out of the recession.

Sadly, we're at the point this is just going to make it more painful in the long run. People need to live within their means. Just because you're an American doesn't mean you're en led to a new iPod every six months, plasmas or LCDs in every room in the house, high speed internet, and a 200K mcmansion (oh, and new cars every 2-3 years).

Damn.

Great post.