Sunday, May 20, 2012

Paul Krugman Urges Public Spending, Not Austerity

Nobel Prize-winning economist Paul Krugman has led the charge against the conservative economic focus on deficits and cutbacks. He has repeatedly argued that during a depressed economy, it is government's role to spend, boosting jobs and stimulating consumer demand, resulting in more jobs. In the video below, Krugman speaks to Amy Goodman of "Democracy Now!" about what government should do: "The economics is really easy. If we were to spend more money at the government level and ... rehire the schoolteachers, firefighters, police officers who have been laid off in the last several years because of cutbacks at the state and local level, we would be a long way back towards full employment. ... Right now, there just is not enough spending, and we need the government, which can do it, to step in and provide the demand we need. ... We’ve had austerity in the face of a recession, in a way that we have never had before since the 1930s. ... And the results are clear: it’s disastrous." Watch:

Transcript here. The interview continues with parts two, on JP Morgan and financial regulations; three, on European austerity; and four, on former Republican Senator Alan Simpson's criticisms of Krugman.


Michael The Molar Maven said...

Republicans have always been the party of fiscal irresponsibility. They invoke the Bible whenever possible but seemed to have learned very little from it. Joseph taught us to save in the greenwood, so we will have something to fall back on in the dry. What did the republicans do? They created deficits when times were good, when we should have been saving.

Jeff Tone said...

Exactly. They'd do better by studying Keynes and listening to Krugman.