Tag Archives: Paul Krugman

Debt And The New American Exceptionalism

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Federal Reserve Chairman Janet Yellen plans to increase interest rates. Can government and households survive the shock? [Credit: Huffington Post]

Fed­er­al Reserve Chair­man Janet Yellen plans to increase inter­est rates. Can gov­ern­ment and house­holds sur­vive the shock? [Cred­it: Huff­in­g­ton Post]

The Amer­i­can econ­o­my is back.  After years of tepid growth and a first quar­ter con­trac­tion, GDP grew by a robust 4.6 per­cent in the third quar­ter of last year.  The unem­ploy­ment rate remained at 5.8 per­cent in Novem­ber, and ana­lysts expect the Labor Depart­ment to announce tomor­row that the econ­o­my added sub­stan­tial­ly more than 200,000 jobs in Decem­ber.  Infla­tion is low, the dol­lar is strong, oil prices have tum­bled, and fed­er­al deficits are low­er.  Near­ly six years after the reces­sion end­ed, the long-await­ed recov­ery appears at last to have arrived.

That recov­ery has in part been dri­ven by a force that could be its undo­ing: debt.  Near­ly $46 tril­lion of it, or more than 2–1/2 times our annu­al eco­nom­ic out­put. Con­tin­ue read­ing →

Paul Krugman and the Inequality Deniers

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Recent criticism of Thomas Piketty's Capital in the 21st Centruy has drawn the ire of the splenetic Paul Krugman. [Credit: National Review]

Recent crit­i­cism of Thomas Piket­ty’s Cap­i­tal in the 21st Cen­tu­ry has drawn the ire of the sple­net­ic Paul Krug­man. [Cred­it: Nation­al Review]

There is grow­ing con­cern among peo­ple on the Right and Left about income inequal­i­ty. But you wouldn’t know that from read­ing Paul Krugman’s lat­est screed.

What stirred Krugman’s bile this week was crit­i­cism of econ­o­mist Thomas Piketty’s book, Cap­i­tal in the 21st Cen­tu­ry, a work that has attained canon­i­cal sta­tus among the Left on both sides of the Atlantic. Con­tin­ue read­ing →

Frenemies of the Poor

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The 50th anniversary of the President Johnson's declaration of a War on Poverty has provoked strong views on whether it has succeeded or failed. The truth lies somewhere between. [Credit: Huffington Post]

The 50th anniver­sary of the Pres­i­dent John­son’s dec­la­ra­tion of a War on Pover­ty has pro­voked strong views on whether it has suc­ceed­ed or failed. The truth lies some­where between. [Cred­it: Huff­in­g­ton Post]

It’s not much of an exag­ger­a­tion to say that right now Repub­li­cans are doing all they can to hurt the poor, and they would have inflict­ed vast­ly more harm if they had won the 2012 elec­tion. More­over, GOP harsh­ness toward the less for­tu­nate isn’t just a mat­ter of spite (although that’s part of it); it’s deeply root­ed in the party’s ide­ol­o­gy.  Paul Krug­man, “Ene­mies of the Poor,” Jan­u­ary 12, 2014

The 50th anniver­sary of Pres­i­dent Johnson’s War on Pover­ty has occa­sioned a good deal of moral exhi­bi­tion­ism. Lib­er­als heap praise on the pro­grams and flat­ter them­selves for sup­port­ing the trans­fer of an esti­mat­ed $20.7 tril­lion (in 2011 dol­lars) in cash and non-cash ben­e­fits from those who earned it to those who did not. And they are rel­ish­ing the oppor­tu­ni­ty to denounce con­ser­v­a­tives as ene­mies of the poor, moti­vat­ed by ide­ol­o­gy and spite.

Some con­ser­v­a­tives, like the Her­itage Foundation’s Robert Rec­tor, are using the anniver­sary to declare the War on Pover­ty lost. Rec­tor recent­ly was quot­ed as say­ing that “the War on Pover­ty has been a com­plete cat­a­stro­phe.” Con­tin­ue read­ing →

Could A Wealth Tax Solve the Problem of Government Debt?

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A recent IMF report suggests that this man's enormous wealth might help resolve the government's debt problem. [Credit: NY Post]

A recent IMF report sug­gests that this man’s enor­mous wealth might help resolve the gov­ern­men­t’s debt prob­lem. [Cred­it: NY Post]

The Inter­na­tion­al Mon­e­tary Fund (IMF) recent­ly report­ed that Euro­pean gov­ern­ments could reduce their debt back to pre-Great Reces­sion lev­els by con­fis­cat­ing 10 per­cent of the wealth held by their rich­est cit­i­zens. IMF isn’t rec­om­mend­ing that, of course.

They’re just sayin’. Con­tin­ue read­ing →

David Stockman sez we’re all gonna die! He’s wrong. Right?

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Showtime's Savanarola from The Borgias

Show­time’s Sava­naro­la from The Borgias

Sea­son 3 of The Bor­gias pre­mieres on Show­time this Sun­day . For those not yet ensnared in this addic­tion, the series tells the sto­ry of Renais­sance Pope Alexan­der VI, one of the papacy’s most dev­il­ish­ly inter­est­ing char­ac­ters. Show­time takes the usu­al Hol­ly­wood lib­er­ties with his­to­ry, though Alexan­der, born in Spain as Rodri­go de Bor­gia, led a life that needs no embell­ish­ing. Con­tin­ue read­ing →