Sunday, February 24, 2013

Krugman: GOP Sequester Proposals Reduce Growth, Increase Injustice

Paul Krugman observes that the origins of the sequester lay with GOP hostage taking in the form of refusing to raise the debt ceiling and President Obama's buying time. The wrangling resulted in the latest manufactured fiscal crisis, the sequester. Now that we’re at this impasse, Krugman resists the pundits’ usual line that Republicans and Democrats are equally to blame for the continued impasse; indeed, the GOP’s proposals hurt job growth and the vulnerable:

Unfortunately, neither party is proposing that we just call the whole thing off. But the proposal from Senate Democrats at least moves in the right direction, replacing the most destructive spending cuts — those that fall on the most vulnerable members of our society — with tax increases on the wealthy, and delaying austerity in a way that would protect the economy.

House Republicans, on the other hand, want to take everything that’s bad about the sequester and make it worse: canceling cuts in the defense budget, which actually does contain a lot of waste and fraud, and replacing them with severe cuts in aid to America’s neediest. This would hit the nation with a double whammy, reducing growth while increasing injustice.

As always, many pundits want to portray the deadlock over the sequester as a situation in which both sides are at fault, and in which both should give ground. But there’s really no symmetry here. A middle-of-the-road solution would presumably involve a mix of spending cuts and tax increases; well, that’s what Democrats are proposing, while Republicans are adamant that it should be cuts only. And given that the proposed Republican cuts would be even worse than those set to happen under the sequester, it’s hard to see why Democrats should negotiate at all, as opposed to just letting the sequester happen.


Michael The Molar Maven said...

Bob Herbert once said this about Al Gore, but the same can be applied to Paul Krugman: Do you think he ever gets tired of being right?

Jeff Tone said...

He probably gets tired of the deficit hawks who ignore his advice and are always wrong.