Skip to main content

View Diary: Krugman: "The Urge to Purge" (62 comments)

Comment Preferences

  •  Thanks for this, Ken... (13+ / 0-)

    I often miss Krugman's column these days.

    This would almost be amusing if it wasn't so diametrically opposed to the real solution to an ailing economy.

    “Liquidate labor, liquidate stocks, liquidate the farmers. ... It will purge the rottenness out of the system.”
    If you're going to purge "the rottenness" from an ailing economy it ought to be [short term] profit-taking. When an economy begins to sputter it's either up to big business or government to restart it. One or the other.

    In our present circumstances -- instead of righteously suckin' it up for six months to a year -- businesses are refusing to spend on labor. (instead hoarding their wealth) So it's up to government to spend.

    If you want economic growth:

    First and foremost, forget all the austerity crap. '86 the sequester. Raise the minimum wage, modestly raise tax rates, (on the 2-3% this time) and then create jobs both by forming an infrastructure bank, and funding more R&D.

    If you want to make Medicare sustainable: (since single-payer is off the table) expand coverage, 'cap' profits, negotiate prescription drug prices, and then change the fee-for-service system.

    Social Security: raise the 'cap' to about $140-$150,000

    (and put the freakin' Wall Street gang in jail just to introduce 'em to a little li'l bit of social justice)

    Oh, and legalize WEED!

    lol

    "That men do not learn very much from the lessons of history is the most important of all the lessons of history." ~ Aldous Huxley

    by markthshark on Fri Apr 05, 2013 at 04:47:53 AM PDT

    •  carry you one step further (18+ / 0-)

      or two, since there are two parts

      1) eliminate the cap on social security

      2) cut the social security age -  that would encourage some people who have access to pensions but are not eligible for social security to retire, opening up jobs for younger people backed up in the queue

      as far as how we raise taxes on the wealthy, put in a financial transactions tax -  it will either generate a huge amount of revenue at a very low rate, or else it will discourage some of the computer-automated trading that is distorting the stock market, or maybe even both.

      Use that money to guarantee Medicare's viability, by devoting 1/2 of its revenue to Medicare funding, which should enable two further things to happen.

      1.  lower the age for medicare, which will also lead to people retiring and opening up jobs

      2.  stop the problem of physicians who refuse to take medicare because the reimbursement rates are too low

      "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

      by teacherken on Fri Apr 05, 2013 at 04:53:21 AM PDT

      [ Parent ]

    •  People have to be bad to justify beating (2+ / 0-)
      Recommended by:
      bsegel, happymisanthropy

      them.

      We organize governments to deliver services and prevent abuse.

      by hannah on Fri Apr 05, 2013 at 05:30:03 AM PDT

      [ Parent ]

    •  Your key phrase "If you want economic growth" (3+ / 0-)
      Recommended by:
      profundo, markthshark, bsegel

      The Republicans in Congress want nothing more than to make things as miserable as possible on this country for having the temerity to vote for a Democrat for President not just once, but twice.  To make matters worse, it's a charismatic, intelligent black man, who shows with everything he does do that he's not only a better president than their candidate could have hoped to be, he's smarter than their candidates and in some ways he's a better Republican than their candidates.

      The Republicans tried all they could to make Obama a one term president.  Now that they've failed at that, they're trying their best to make sure that no Democrat is elected in 2016.  Their best so far, fortunately, has not been to effectively muzzle all those Republicans who continue to alienate huge sectors of voters, from women, to minorities, to GLBT to civil Libertarians.

      Economic growth would be the nail in their coffin for a generation at least, so that's what they're fighting in the streets, in the hedgerows and in the halls of Congress.  President Obama shows every sign of wanting to allow them to win, too.

      •  Certainly a flawed strategy... (2+ / 0-)
        Recommended by:
        ColoTim, bsegel
        Now that they've failed at that, they're trying their best to make sure that no Democrat is elected in 2016.
        They've been trying to make him fail (in the eyes of the electorate) since Jan. 2009. Hasn't worked yet.

        But if Obama keeps pushing these proposed cuts to Medicare and Social Security; he'll accomplish alone what Republicans can't seem to get done together -- sink Democrats' shot at keeping the White House in 2016.

        It just makes no sense.

        "That men do not learn very much from the lessons of history is the most important of all the lessons of history." ~ Aldous Huxley

        by markthshark on Fri Apr 05, 2013 at 09:22:50 AM PDT

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site