Krugman lets the cat out of the bag - Critic of Obamanomics now?
by the Left Coast Rebel
More lousy economic news this morning. Viva la socialista Obamanomica! NYT:
When will leftists, Obama, and the progressive-collectivists admit that their Keynsian spending experiment is an unmitigated failure?
Economic statistics released Friday offered the clearest sign yet that the recovery, already acknowledged to be sauntering, had slowed to a crawl.
The government lowered its estimate of economic growth in the second quarter to an annual rate of 1.6 percent, after originally reporting last month that growth in the three-month period was 2.4 percent.
The news came at the end of a week that showed the economic retrenchment that began in the second quarter has spilled over into the summer. Existing home sales in July were down to their lowest level in a decade, and sales of new homes that month were at their lowest level since the government began tracking such data in 1963. Orders for large factory goods, excluding the volatile transportation sector, dropped in July, indicating that recovery in the manufacturing sector is also stalling.
With such grim reports, economists are now concerned that the outlook for job creation, which has been spluttering all summer, could deteriorate further. Companies and consumers tend to be spooked by bad news, and market analysts and economists worry that faltering confidence could cause employers to hold back on hiring.
- They won't - it will take a ballot-revolution, come November.
Case in point, I saw Paul Krugman's latest column trending at memeorandum, "This is not a Recovery." An interesting headline, I thought - but I bet Krugman will still find a way to blame George W. Bush and/or conservatives for the bad economic news.
Actually, he goes a bit further than that, writing:
The White House has lost Krugman? Perhaps but his solution is a Keynsian bridge to nowhere.
What will Ben Bernanke, the Fed chairman, say in his big speech Friday in Jackson Hole, Wyo.? Will he hint at new steps to boost the economy? Stay tuned.
But we can safely predict what he and other officials will say about where we are right now: that the economy is continuing to recover, albeit more slowly than they would like. Unfortunately, that’s not true: this isn’t a recovery, in any sense that matters. And policy makers should be doing everything they can to change that fact.In the case of the Obama administration, officials seem loath to admit that the original stimulus was too small. True, it was enough to limit the depth of the slump — a recent analysis by the Congressional Budget Office says unemployment would probably be well into double digits now without the stimulus — but it wasn’t big enough to bring unemployment down significantly.
Now, it’s arguable that even in early 2009, when President Obama was at the peak of his popularity, he couldn’t have gotten a bigger plan through the Senate. And he certainly couldn’t pass a supplemental stimulus now. So officials could, with considerable justification, place the onus for the non-recovery on Republican obstructionism. But they’ve chosen, instead, to draw smiley faces on a grim picture, convincing nobody. And the likely result in November — big gains for the obstructionists — will paralyze policy for years to come.
According to Krugman's logic the stimulus should have been much, much more, say....2 trillion? Why not then, 3 or 4? Why stop there? And with 800 + billion (of which much still hasn't been spent) and that which has, has been mismanaged and hasn't helped the economy or recovery - why would an even higher dollar stimulus then 'save the economy.'
Krugman in all of his leftist-brilliance misses a simple point. Deficit spending creates massive uncertainty within private enterprise. They know (as I do) that there is no such thing as a free lunch. Not to Kruggie though, it's always the same old tired dogma.
Isn't it fascinating just what straight-jacket, Leninst-liberalism looks like?
It's a simple yet rigid narrative:
--- Government spending runs the economy , you are an idiot to challenge so, history tells us nothing (as in the Weimar Republic) and an isatiable appetite for your tax dollars, your liberty and the future of your nation by nanny state rulers shall never be satiated.