The Rockin Johnny B

Monday, November 12, 2012

To those who do not know who Paul Krugman is, he's a brilliant economist who has debunked so many Conservative economical ideas it's just ridiculous.   The biggest being the "Trickle Down" or Supply Side Economic model.  Paul simply says it doesn't work then gives the reason in very simple terms.  Trickle Down Economics does not take into account GREED.  Giving money to rich people is like pounding sand down a rat hole...there's never enough sand and you never get back what you've already pounded.  The rich are rich because they don't spend money, they invest money.  And that's the simple answer as to why giving them money is a ridiculous idea.  They don't build anything...they don't spend the money, they invest it.  A lot of this investment is in overseas markets and America never sees that money again.  As I said, Paul Krugman is a smart person.  Here's a brief bio...

Mr. Krugman received his B.A. from Yale University in 1974 and his Ph.D. from MIT in 1977. He has taught at Yale, MIT and Stanford. At MIT he became the Ford International Professor of Economics.

Mr. Krugman is the author or editor of 20 books and more than 200 papers in professional journals and edited volumes. His professional reputation rests largely on work in international trade and finance; he is one of the founders of the "new trade theory," a major rethinking of the theory of international trade. In recognition of that work, in 1991 the American Economic Association awarded him its John Bates Clark medal, a prize given every two years to "that economist under forty who is adjudged to have made a significant contribution to economic knowledge." Mr. Krugman's current academic research is focused on economic and currency crises.

At the same time, Mr. Krugman has written extensively for a broader public audience. Some of his recent articles on economic issues, originally published in Foreign Affairs, Harvard Business Review, Scientific American and other journals, are reprinted in Pop Internationalism and The Accidental Theorist.

On October 13, 2008, it was announced that Mr. Krugman would receive the Nobel Prize in Economics.

His latest diatribe:  11/12/12

Paul Krugman: Democrats Could Fail If They Betray Their Base

Paul Krugman warns that the ascent of the Democratic Party could be short-lived if they betray their base.

"The Democrats now look like the natural party of government," the Nobel Prize-winning economist wrote in a New York Times blog post on Sunday. "We're a diverse nation, ethnically and otherwise, in which a lot of liberal ideas have become perfectly mainstream."
But, he added, Democrats could waste this opportunity by caving to the Republican agenda in negotiations with Congress.

"This newly effective coalition could be shattered if taken for granted," Krugman wrote. "If, say, Obama raises the retirement age in return for vague promises on revenue (promises that would be betrayed at the first opportunity); if he appoints a deficit scold to a major economic post; it could all fall apart."

The fiscal cliff will be the first major post-election test of whether President Barack Obama will stand firm or cave. The fiscal cliff is a set of $1.2 trillion in spending cuts and tax hikes that are scheduled to take place on Jan. 1 if Congress does not agree on a plan to reduce the deficit. It is likely to cause a recession, according to economists.

Congressional Republicans are trying to reach a deficit reduction deal to avert the fiscal cliff with mostly spending cuts and little new tax revenue. Unlike Obama, they don't want to let the Bush tax cuts on income above $250,000 expire. Krugman wrote in a New York Times column on Friday that Obama should go over the fiscal cliff if necessary to get his way.
But Obama may already be giving in. He is proposing a deficit reduction deal that would cut $3 in spending for every $1 in new tax revenue. These spending cuts are likely to hit the poor, middle class, and elderly.

In my opinion, if Paul Krugman has a warning for the Democratic Party, it behooves said Democrats to pay heed.  This man is a weather vane when it comes to economics and politics.  You can count him out at your own risk.  I watched and listened intently as Paul predicted the outcome of the election.  He predicted that the great unwashed American Nation would see through the Republican Bull and elect Obama for a second term.  He predicted that they would listen to their own press and not what 'real' economists and pollsters were saying.  He predicted that when push came to shove, the American Public would vote for the guy with the most ethical and moral stance politically.  He was right!

No comments:

Post a Comment