Legends of the Fail (Nobel Laureate Paul Krugman insists Welfare State did not sink Europe)

New York Times ^ | 11/11/2011 | Paul Krugman

[SeekAndFind]

This is the way the euro ends — not with a bang but with bunga bunga. Not long ago, European leaders were insisting that Greece could and should stay on the euro while paying its debts in full. Now, with Italy falling off a cliff, it’s hard to see how the euro can survive at all.

But what’s the meaning of the eurodebacle? As always happens when disaster strikes, there’s a rush by ideologues to claim that the disaster vindicates their views. So it’s time to start debunking.

First things first: The attempt to create a common European currency was one of those ideas that cut across the usual ideological lines. It was cheered on by American right-wingers, who saw it as the next best thing to a revived gold standard, and by Britain’s left, which saw it as a big step toward a social-democratic Europe. But it was opposed by British conservatives, who also saw it as a step toward a social-democratic Europe. And it was questioned by American liberals, who worried — rightly, I’d say (but then I would, wouldn’t I?) — about what would happen if countries couldn’t use monetary and fiscal policy to fight recessions.

So now that the euro project is on the rocks, what lessons should we draw?

I’ve been hearing two claims, both false: that Europe’s woes reflect the failure of welfare states in general, and that Europe’s crisis makes the case for immediate fiscal austerity in the United States.

The assertion that Europe’s crisis proves that the welfare state doesn’t work comes from many Republicans. For example, Mitt Romney has accused President Obama of taking his inspiration from European “socialist democrats” and asserted that “Europe isn’t working in Europe.”

[Buckeye McFrog]

The liberal “fix” for this endorsed by guys like Krugman is a global U.N. Tax, along with a regime of regulating and equalizing tax rates across all countries. To make things “fair”.

[ding_dong_daddy_from_dumas]

At the NYT link he continues the same line of argument: The problem with Greece, Italy Spain is that they cant print their way out of debt and recessions, because of the Euro. It's not because they became a ' consumer ' based society not producing anything while consuming. 'Consumption' side economics says that the government employee creates the jobs, by spending money.

One would think that the Nobel committee, Yale, and Harvard would be concerned about individuals who garner diplomas and Nobel Prizes from those once respected institutions, and then advocate mindless leftist theories. Not so. Zealots like Obama and Krugman represent what those institutions (with exceptions for a few faculty members) stand for today.

[JimWayne]

Would those of you who are simply demeaning Krugman please point out why he is wrong?

See SeekAndFind's post containing an article about Krugman's contradictions showing that he is mentally unstable

[pepperdog]

Since Obama got a Nobel I've decided to regard a Nobel for anything other than a technical accomplishment as akin to a felony conviction.

[sickoflibs]

RE :”At the NYT link he continues the same line of argument: The problem with Greece, Italy Spain is that they cant print their way out of debt and recessions, because of the Euro. It's not because they became a ‘ consumer ‘ based society not producing anything while consuming. ‘Consumption’ side economics says that the government employee creates the jobs, by spending money.
....
One would think that the Nobel committee, Yale, and Harvard would be concerned about individuals who garner diplomas and Nobel Prizes from those once respected institutions, and then advocate mindless leftist theories. Not so. Zealots like Obama and Krugman represent what those institutions (with exceptions for a few faculty members) stand for today.”

To expand their economic theory I hear every-night on MSNBC: American does not have to worry about producing anything but government jobs, because we have a demand problem NOT a supply problem. It's because not enough people want and afford to buy things.

It's not taxes or regulations or employers fear of being demonized and called in front of congress, it's purely lack of demand due to consumer debt, all the rich bankers faults. So we just take some money from them that bthey dont need that they slole anyway, and then print LOTS more and hand it out to those that 'need' it because they will spend it making employers happy with all that demand and we all will have 'jobs' (giving money to illegals works just as well.)

Look, as dumb as this sounds I dont hear many Republicans really explaining why it is dumb.

[GOPJ]

Bias and the Internet didn’t hurt newspapers either...

[TheOldLady]

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[Rum Tum Tugger]

Thanks for your replies.

Actually, my undergraduate major was Economics, but when I read Krugman I generally find his conclusions to not be supported. However, Krugman does have a Nobel Prize, he’s a professor at Princeton and my daughter who’s a sophomore in college is using his very expensive textbook for her International Trade class. So, I want to attribute some credibility to Krugman but I rarely find it in what he writes. Also, if what he writes were true, the solutions to current economic problems would be pretty simple.

[Southack]

No nation has ever printed or borrowed its way to prosperity.

The converse, however, is that many a grand society has imploded from too much crushing debt.

[Lancey Howard]

Krugman is a laughingstock. I’m surprised he didn’t point to the Cuban success story.

[Lancey Howard]

The Nobel committee? The Nobel committee is an eye-rolling laughingstock. It’s got all the credibility of People Magazine’s, “Sexiest Man Alive”. Nobody pays any attention to that thing any more.

FRegards,
LH

[JimWayne]

Please be sure to read the American Thinker article that highlights his contradictions. This is an article that will open the eyes of even college students.

[Baynative]

What the quote you cited shows is the continuing effort of liberals to rewrite history and shape it for their own purpose. Krugman is hoping the crap he tosses around will someday be taught as fact in IV league economy classes.

This is the continued shaping of history and influencing of the public to promote another term for Obama and fuel his move toward economic collapse that they think will lead to a socialist revolution.

When I see his picture, the old saying about wiping the smirk off someone's face comes to mind:

[kevkrom]

The attempt to create a common European currency was one of those ideas that cut across the usual ideological lines. It was cheered on by American right-wingers, who saw it as the next best thing to a revived gold standard

Really? I always that the Euro (and the EU) was a dangerously bad idea that gave way too much power to France and Germany. What "right wingers" actually thought the Euro was a good idea?

[domeika]

When liberals like Krugman floss, I’d bet the bits dislodged are a mix of kobe beef and their own colon polyps.