Another Response to Paul Krugman

Senior leftist propagandist for the Obama mania media Paul Krugman now defends the Stimulus plan. Krugman started off his column “Stay the Course” as saying:

The debate over economic policy has taken a predictable yet ominous turn: the crisis seems to be easing, and a chorus of critics is already demanding that the Federal Reserve and the Obama administration abandon their rescue efforts. For those who know their history, it’s déjà vu all over again — literally.

Krugman still spreads the same fear mongering the Obama administration spread in order to get the “Stimulus” bill passed. Krugman mentions the Stimulus plan and says that the economy is recovering. Yet Krugman fails to mention that the CBO [Congressional Budget Office] stated that though the Stimulus plan will help the economy in the short term, it’ll be disasterous in the long term.

Krugman said:

And Republicans, providing a bit of comic relief, are saying that the stimulus has failed, because the enabling legislation was passed four months ago — wow, four whole months! — yet unemployment is still rising.

Yet Joe Biden said that during the time when Obama was spreading fear mongering vis -a-vis Stimulus plan, that everyone was just wrong. He said that it saved jobs, when a few million jobs were lost since January. Furthermore, even Krugman admitted it. Krugman still says the same thing Obama said and the same thing that everyone supposedly wrongly believed according to Joe Biden.

Krugman said:

On one side, the inflation worriers are harassing the Fed. The latest example: Arthur Laffer, he of the curve, warns that the Fed’s policies will cause devastating inflation. He recommends, among other things, possibly raising banks’ reserve requirements, which happens to be exactly what the Fed did in 1936 and 1937 — a move that none other than Milton Friedman condemned as helping to strangle economic recovery.

and:

What about the claim that the Fed is risking inflation? It isn’t. Mr. Laffer seems panicked by a rapid rise in the monetary base, the sum of currency in circulation and the reserves of banks. But a rising monetary base isn’t inflationary when you’re in a liquidity trap.

Yea, spending thousands, millions, billions and trillions on every little pet project is not going to cause inflation on planet Krugman. The CbO estimated that Obama’s economic policy is 1 trillion per year and 10 trillion in ten years. Yet Krugman wines about the “inflation warriors” pointing out these facts. Krugman said:

And Republicans, providing a bit of comic relief, are saying that the stimulus has failed, because the enabling legislation was passed four months ago — wow, four whole months! — yet unemployment is still rising.

Hey, Krugman. Maybe tell that to Joe Biden, who really needs some claim to be made in order to not look stupid when admitting the truth that doesn’t make Obama look his best. Obama promised that the passing of the Stimulus plan would have unemployment by 8% at the most. Now, it is at 9.4%, which is about the same amount Obama claimed that it would be if the Stimulus plan wasn’t passed. Hey, Krugman, do you want to see real comical relief? hy not watch Biden and White House Press Secretary Robert Gibbs making fools of themselves or Obama without his telepromter? Why needs comedy when you can just listen to to good old Joe or Gibbs? Comedy is when you take the telepromer away from Obama during his speeches. That’s the real “comical relief”. With the Obama Administration robbing from younger generations with his Socialist policies, you can always get a good laugh listening to Joe, who admitted that the Obama Administration would waste some money, or Gibbs.

Krugman said:

The first example of policy in a liquidity trap comes from the 1930s. The U.S. economy grew rapidly from 1933 to 1937, helped along by New Deal policies. America, however, remained well short of full employment.

Yet scholars actually debunked the liberal myth that the new deal helped the American economy during the Great Depression. All you have to do is google stuff like new deal disaster and you’ll find at least three results. There are plenty of more scholarly analysis on how the new deal helped make the American economy worse, as scholarly analysis from sites like the FEE [Foundation for Economic Education] show. Even the Treasury Secretary for FDR Henry Morganthau said this about the New Deal:

We are spending more than we have ever spent before and it does not work. . . . We have never made good on our promises. . . . I say after eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!

Krugman concludes:

To sum up: A few months ago the U.S. economy was in danger of falling into depression. Aggressive monetary policy and deficit spending have, for the time being, averted that danger. And suddenly critics are demanding that we call the whole thing off, and revert to business as usual.

Those demands should be ignored. It’s much too soon to give up on policies that have, at most, pulled us a few inches back from the edge of the abyss.

Let’s ignore the opponents of Obama’s Socialist thievery and just increase the deficit. I know the liberal story. Under Bush, the deficit is bad. Under the “god” Obama, we need a deficit. No liberal even said that we [America] needs a deficit in order to recover when George W. Bush was President. When Obama is President and dramatically increases the deficit [this is contrary to what he said on the campaign train when he speaks out against the deficit and pledges to cut it in half], we need a deficit. This article is just Krugman providing the real “comical relief”, something that you’ll get a lot of from listening to Biden or Gibbs. It’s something you can get a lot out of when Obama doesn’t have a teleprompter. It is something a lot of people could’ve had and/or got when they listened to Obama mentioning a non-existent language called Austrian.