[FoRK] Krugman in NYT: The Third Depression

Jeff Bone jbone at place.org
Mon Jun 28 13:40:21 PDT 2010


On Jun 28, 2010, at 3:05 PM, geege schuman wrote:

> On Mon, Jun 28, 2010 at 12:43 PM, Jeff Bone <jbone at place.org> wrote:
> 
>> 
>> On Jun 28, 2010, at 9:56 AM, geege schuman wrote:
>> 
>>> Heard this and something else yesterday that I'm still trying to find.
>>> Argument re timing.
>>> 
>>> http://www.npr.org/templates/story/story.php?storyId=128143091
>>> 
>>> Geege
>> 
>> Yup, there's the small matter of that.
>> 
>> 
> <CORNISH: But what are most economists saying? I mean is - keep spending or
> balance the budget?
> 
> GEEWAX: Well, you know, Audie, we're talking about economics...
> 
> CORNISH: Right. Right.
> 
> (Soundbite of laughter)
> 
> GEEWAX: ...so there's always a big range of opinions here. But I would say
> that most mainstream economists would say that governments shouldnt cut off
> spending suddenly or raise taxes when an economy is pulling out of
> recession.
> 
> And I was talking to this economist last week. And he said, obviously we
> need debt reduction over time, but this summer it'd be the wrong time to
> throw the car into reverse.>
> 
> It would be better to drive it over a cliff.

That's an excellent analogy.

I disagree with the conclusion.

jb



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