Paul Krugman

A Huffington Post commenter responding to my recent piece on the Washington Post's recent Social Security article by saying that I "claimed 'inaccuracies, falsehoods, and downright lies' but delivered problems of tone, and emphasis." more »

More »»

Paul Krugman took another shot at Modern Monetary Theory (MMT) today. He began with this claim: more »

More »»

The American people have just endured a months-long bipartisan battering with words, as politicians and talking heads from both parties insist that they "take their medicine" by enduring severe austerity cuts. Against all evidence, they were told that this would be good for the economy. This illogical argument only has credence because Washington's filled with followers of a free-market religion whose deity is the Market, whose Oracle is the stock exchange, and whose clergy includes bishops named Greenspan, Geithner, Rubin, and Rivlin.

But if Democrats are true believers, Republicans are this religion's fundamentalists. All they need to do is repeat the sacred phrase "Tax cuts produce jobs!" and the whole congregation forms into ranks, prepared to do battle.

Believers in the One True Market believe that their Deity can only be propitiated when they sacrifice the sick, the elderly, and the poor. This lowers government expenditure and reduces political pressure to make the rich and powerful pay their fair share. We're told that this sort of sacrifice reassures the wealthy. These minor deities will then invest and create new jobs, which is why they're given the ritual title of "Job Creator" or "Wealth Creator."

More »»

This isn't the first time the White House has floated the idea of Social Security cuts as part of a 'grand bargain' with Republicans, and it's not the first time there's been a groundswell of opposition. But that opposition has never crystallized so quickly into something deeper and more threatening to the President's political fortunes.

Liberal pundits are turning against him and Democrats on the Hill are taking the fight directly to him. With a new poll confirming that Social Security cuts would alienate the other side's base and independents, this "grand bargain" doesn't look like much of a bargain anymore.

Sen. Bernie Sanders already laid the responsibility for unpopular cuts squarely at the President's feet on a phone call with reporters today: " We thought Social Security was off the table," said Sanders, "but by reopening this issue the White House is not only going to take on these changes, but will open the door to whatever else Republicans want."

In other words: If something bad happens to Social Security, you own it, Mr. President.

More »»

Apparently the august and statesmanlike Mr. Rush Hudson Limbaugh III (his real name) was a little displeased by our piece in the Huffington Post this weekend, "Why Progressives Keep Losing and the Right Keeps Winning."  He read it out loud on his show this morning, and I'm about to say something about that which might shock and surprise you:

He was neither as courteous as one might hope nor as well-informed as once might expect. Disappointing, I know.

Rush spent nearly ten minutes of air time reading my piece and commenting on it. It wasn't all bad: After initially mispronouncing my name, he corrected himself and said it correctly. The man's a pro; gotta give him that. Almost nobody gets my name right.

You'll notice that he does change my words in one way: Whenever "Democratic Party" appears in the text he says "Democrat Party" instead. Oh, and he calls the Huffington Post the "Huffington Puffington Post." Très drôle, no?

Rush was furious at the suggestion that the Right won this weekend's negotiation. Do you feel like you won? he asked his listeners. Who cares? Judging by the hate mail I've received since the show aired, I doubt his listeners can feel their toes.

More »»

One commenter at FireDogLake says:

”. . . we should be exceptionally careful not to jeopardize the hard-fought for benefits (like S.S.) by risking devaluation of the dollar. more »

More »»

In the big budget fight going on right now in Congress, the Tea Party conservatives rightly point out that $61 Billion in spending cuts is just a drop in the bucket compared to the $1.6 Trillion predicted deficit, and they react with a great deal of moral fervor to the suggestion that they ought to compromise on $33 Billion in cuts in order to avoid shutting down the Government. more »

More »»

After the scorching he received in many of the comments on his printing press post Paul Krugman decided to dig his MMT blogging hole even deeper.

He says:

“. . . more »

More »»

The Modern Monetary Theory (MMT) approach to economics must be starting to make some waves, because today, Paul Krugman, followed his earlier attack on it and his debate with Jamie Galbraith and others last summer, with more »

More »»