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cushioncrawler
11-14-2012, 07:01 PM
The Austerity Bomb
Krugman.

Brian Beutler of Talking Points Memo seems to have been the first to use the phrase “austerity bomb” for what’s scheduled to happen at the end of the year. It’s a much better term than “fiscal cliff”. The cliff stuff makes people imagine that it’s a problem of excessive deficits when it’s actually about the risk that the deficit will be too small; also and relatedly, the fiscal cliff stuff enables a bait and switch in which people say “so, this means that we need to enact Bowles-Simpson and raise the retirement age!” which have nothing at all to do with it.

And it can’t be emphasized enough that everyone who shrieks about the dangers of the austerity bomb is in effect acknowledging that the Keynesians were right all along, that slashing spending and raising taxes on ordinary workers is destructive in a depressed economy, and that we should actually be doing the opposite.

Meanwhile, in Europe, which has had much more austerity in aggregate than we have, grim new industrial production numbers and a worsening unemployment crisis:

By the way, some readers have asked me what is happening to Ireland, which has seen an especially sharp fall in industrial production. The answer appears, in part, to be Lipitor. That is, expiring patents on some important drugs have created a cliff for Ireland’s pharma exports. You don’t want to overstate the real impact on Irish citizens: pharma looms large in Irish GDP but not so much in employment or GNP, because it’s highly capital-intensive and much of the value-added accrues to foreign multinationals. Still, not what Ireland needed.

Gayle in MD
11-15-2012, 06:55 AM
He right! He's always right.

G.

cushioncrawler
11-15-2012, 07:07 AM
Yes, but i am still going to buy shares in Country Gents Crotch Powder. And Dr Bandit's Crotch Powder. Thems Congress sittings are going to go on and on, especially with a filibuster every day.
mac.

Gayle in MD
11-15-2012, 07:22 AM
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Better buy some stock in Kool Aid, and Fried Twinkies, too.

The delusional Repigs can't get enough of it!

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LWW
11-15-2012, 08:04 AM
What's amazing is that we have a member here who was howling at the Moon in favor of Simpson-Bowles ... solely because a moonbat crazy leftist site told them to howl in favor of it ... and now that another moonbat crazy leftist tels them to howl at the Moon against Simpson-Bowles, they obediently do exactly that while immediately forgetting tat they had just been in favor of it.

DOUBLETHINK is a fascinating mental illness to observe.

Mac, although we disagree ... you one of the rare leftists with the integrity to admittedly embrace fascism and have a consistent opinion.

Soflasnapper
11-15-2012, 08:48 AM
I'd think that mac is rather an anarchist, and while some might place that position on the far left, you cannot, because you identify leftists with an individual-crushing statism.

I do not remember anyone here supporting SB, but it seems only logical that one of the positions you mention is likely true-- it's either worthy of opposition or support. So whomever you mean to reference either lurched into the truth or had the truth before losing it, and probably not for the reason you claim-- that they simply mimicked some oracular leftie site. Because no leftie site every supported SB, to my knowledge.

LWW
11-15-2012, 08:54 AM
Mac has often embraced Hitler and fascism, and you are finally leaning that at the extreme right end of the spectrum is where anarchy exists.