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View Diary: Krugman and the Paradox of Austerity (93 comments)

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  •  I don't see (2+ / 0-)
    Recommended by:
    Dr Squid, milkbone

    how the notion that cutting spending leads to contraction is difficult to understand.

    Just think it through--fewer jobs mean less tax revenue, and fewer jobs means less consumption.  Less tax revenue and less consumption leads to overall more contraction.

    The banks have a stranglehold on the political process. Mike Whitney

    by dfarrah on Tue Sep 20, 2011 at 09:35:10 AM PDT

    •  No it isn't difficult to understand (0+ / 0-)

      if you know beforehand that tax revenue and spending are not independent. Common sense, which in this case is common stupidity, says they are independent, which is why there is so much head-explodey behavior out there.

      If bin Laden owned an oil company, [the GOP would] be wearing long beards and shooting at US troops in Afghanistan.-Geekesque

      by Dr Squid on Tue Sep 20, 2011 at 09:56:58 AM PDT

      [ Parent ]

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