Posted on 01/19/2013 11:32:07 AM PST by John Semmens
Nobel Prize winning left-wing economist Paul Krugman maintains that concern about bloated government spending and multi-trillion dollar debt is unwarranted.
“The right-wing enemies of President Obama are playing on the average person’s fears of bankruptcy in order to limit his power,” Krugman said. “While it may be true that an individual who owes more than he can pay could face financial ruin, the same is not true for the Government.”
“A key difference is that most individuals’ income is restricted to what they can earn by offering services in the marketplace,” Krugman continued. “Government, though, doesn’t have to earn its money by offering services. If needed it can tax every dollar everyone else earns. Even more significant, though, the Government can create as much money as it has to to pay its bills. Over the last decade or so, the Government has created $10 trillion in new money. This has allowed Government to fund expanded spending at no cost to itself.”
Though he conceded that creating new money depreciates the value of each existing dollar, Krugman argued that “the main victims of this phenomenon are those who are hoarding cash. If anyone deserves to suffer it is those who selfishly save money that they could’ve spent to help stimulate the economy. The trillion dollar deficits of the current Administration have enabled the Federal Reserve to incrementally siphon off what would otherwise be sitting sterile in these fools’ ‘rainy day’ funds.”
if you missed any of this week's other semi-news/semi-satire posts you can find them at...
http://azconservative.org/2013/01/19/attorney-general-says-requiring-doj-to-comply-with-law-too-risky/
What an idiot Krugman truly is. I suppose he thinks we can just snap our fingers and the 16 trillion dollar deficit will just go away or perhaps he was the one behind the idea of the trillion dollar bill. Whatever. The man is a fool and it makes me wonder the validity of the Nobel Prize for anything.
Sorry. Completely missed the fact this was satire but no matter Krugman is still an idiot and any of us could run the economy better than him.
-—well, after all—Yassir Arafat got Nobel , too-—(sarc)
Good point.
There...fixed it so we finally have something truthful from Krugman.
When the run from bonds occurs, interest rates skyrocket. There’s nothing left to tax—no business, nothing. Save. Prepare for the rainy day by saving. After the big inflation, the deflation will be deep, indeed. Oh, yeah, foreign products will be high (seeming inflation), but domestic resources will be cheap as dirt. Won’t matter much, anyway, because Americans won’t be buying at all then (most government employees laid off, most services shutting down, most pensioners getting the big “haircut”). The bright side will be unimpeded production in many small shops for lack of enforcement of anti-competition regulations.
“If anyone deserves to suffer it is those who selfishly save money that they could’ve spent to help stimulate the economy.”
Ah - the evil thinking of a Marxist exposed in the light of day for all to see.
“You have no right to your money. We can tax it all if we want. And, you shouldn’t be ‘selfishly’ saving that money for the future, your retirement, emergencies, etc. It really belongs to everyone else - so you should be spending it all - you should all be spendthrifts like your goverment is.....”
“And sure, we are stealing from you, taking what is yours, by devaluing your dollars. But after all, that is our right - because you have no right to your money anyway.”
One of the first rights given to man is ownership. Destroy that, and you destroy man.
Even though this is satire, this is what Keynesian libtards actually believe. For Keynesians, one of the purposes of the budget deficits is to reduce saving by means of financing the deficit by the spending money on the purchase of government bonds, that otherwise would have been saved.
Two erroneous propositions lead to the above belief:
1) that reducing savings leads to reduced investment and greater consumption, which leads to an increase in the average rate of profit, which leads to an increase in the supply of labor hired and
2) that laissez faire capitalism favors increased savings, which leads to increased investment, which leads to reduced average rate of profit, which leads to reduced supply of labor hired or higher unemployment.
The correct principle is that, in conditions of laissez faire capitalism, increased savings leads to increased investment, which leads to increased productive expenditure, which leads to increased demand for labor, which leads to increased supply of labor hired and higher employment.
The brilliance of this article is that it is entirely reasonable to assume Krugman could have said this!
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