Tag Archives: budget deficit

News Roundup – Egypt, Paul Krugman, North Carolina

The violence in Egypt is simply breathtaking. Maybe heartbreaking is a better term.. I understand that Egyptians, for the most part, weren’t happy with the Muslim brotherhood. I’m sorry. If you indeed had a free and fair election, you need to live with the consequences. I am sitting here in North Carolina seizing over what has happened to what was the most progressive state in the South. Our answer is not to take to the streets and begin randomly shooting people. Instead, we are organizing. We’re going to get more people registered to vote. We’re going to vote these ultra conservative Republicans out of office and take back our state.

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Paul Krugman had two excellent posts yesterday. The first post had two things that were very interesting to me. First, Professor Krugman wondered if most Americans knew that the budget deficit has been rapidly decreasing. Somebody from Google got in contact with him and they quickly put out a survey. This isn’t the exact same thing as a poll, but it does give you an idea of the power of the Internet. The poll suggested that over 75% of the respondents had no idea that the federal deficit had significantly decreased. This brings me to my next point, that the budget deficit has significantly decreased compared to GDP.

In Paul Krugman’s other post, he talks a little bit about the economy in the Netherlands. The Netherlands had the kind of “Grand Bargain” that several in Washington have been arguing for for the last couple of years. Basically, cut the federal budget and cut the federal budget some more. Then, when you think you’re through, cut the federal budget once more for good measure. Well, this didn’t work out so well for the Netherlands. Their economy is in the tank. Continue reading News Roundup – Egypt, Paul Krugman, North Carolina

Tuesday Evening News Roundup

Tuesday Evening News Roundup

Austerity really isn’t working out all that well in Europe.

William Black, scholar and economist, takes the Washington Post’s William Samuelson to task for advocating for austerity measures

We have known for over 75 years that the key to recovering from a recession is to follow a counter-cyclical fiscal policy that will reduce unemployment. We have long exhibited the wisdom to adopt automatic stabilizers that increase government services and decrease taxes when a recession strikes.

What would have happened if Obama had adopted austerity as Berlin imposed austerity on the European periphery? It would have prevented any recovery, throwing the U.S. into an even more severe recession. Berlin’s austerity demands have thrown the Eurozone back into a gratuitous recession, increasing the budget deficit in many nations and plunging Greece and Spain into depressions. Europe has followed Samuelson’s and Ryan’s policy advice and the results have been disastrous. Samuelson’s and Ryan’s austerity policies violate economic theory, economic history, and a natural experiment in Europe with austerity that has proved catastrophic. Samuelson, however, makes bizarre odes to Irish austerity, emphasizing the necessity of “persuading ordinary citizens to tolerate austerity (higher unemployment, lower social benefits, [and] heavier taxes) without resorting to paralyzing street protests or ineffectual parliamentary coalitions.”

New York Atty. Gen. sues Bear Stearns (J.P. Morgan bought the remnants of Bear Stearns). It appears that Bear Stearns was selling toxic complex mortgage-backed securities and they knew it was garbage but sold it as “good as gold.” Continue reading Tuesday Evening News Roundup