Skip to main content

On January 6th Paul Krugman wrote a piece (The Big Fail) every Right Wing politician and every myth based economist should read. It was expected that at this year’s American Economic Association meeting, that they would be discussing about the success of the slump ending. Instead, they are still talking about the ongoing slump.

This should have been expected given the nature of the corrupt fiscal policy of the United States and every “capitalist free market” country in the world. Could it be that this chart would be forgotten? What cannot be absolved is that these policies have decimated the middle class.

Paul Krugman ponders why:

It’s tempting to argue that the economic failures of recent years prove that economists don’t have the answers. But the truth is actually worse: in reality, standard economics offered good answers, but political leaders — and all too many economists — chose to forget or ignore what they should have known.

The reality is that the purity of science has been corrupted by scientists as hired guns, (e.g., climate change deniers). When companies can purchase scientist that can overtly deny the obvious verifiable failure of drugs, technologies, and the bad outcomes of their products, how can one expect economists to not suffer an even more perverse faith, given the inexactness of that “science”.

The failure of the world’s economy was man made. It was a fraud by the financial titans on the middle class and the poor. It was the middle class and the poor (we the people) that ultimately rescued them with the creation of money to make them whole. When these titans needed rescue they were happy to accept a Keynesian approach to inflate the financial sector via the resources of the government. Of course they do not want the middle class “sector” inflated with public dollars to repair and create infrastructure, education capital, and future energy paradigms. That would mean the people dictating the economy as oppose to them holding the economy hostage to extort cheap labor.

It is not enough for them that the austerity they are seeking has failed in every major country in the world that has implemented it. Paul Krugman illustrates this brilliantly:

But it all went wrong in 2010. The crisis in Greece was taken, wrongly, as a sign that all governments had better slash spending and deficits right away. Austerity became the order of the day, and supposed experts who should have known better cheered the process on, while the warnings of some (but not enough) economists that austerity would derail recovery were ignored. For example, the president of the European Central Bank confidently asserted that “the idea that austerity measures could trigger stagnation is incorrect.”

Well, someone was incorrect, all right.

Exactly. The fact that the evidence is staring everyone in the face does not seem to be enough to derail those that continue to have bad ideas. Why is that? There is a media out there that gives both sides and sometimes more so the side of the Right equal plausibility. Paul Krugman should be a constant on every network. After all, his prognostications have been mostly correct. He ends his article with a prescient statement.

The truth is that we’ve just experienced a colossal failure of economic policy — and far too many of those responsible for that failure both retain power and refuse to learn from experience.

What should be added is that when McCain, McConnell, & Gingrich can be the voices that the media continuously reach out to in order to discuss what ails our country, we have a problem. When economists like Paul Krugman, Joseph Stiglitz, and Richard Wolff, the folks that have been continuously correct, are the voices of authority we hear from, we will have the possibility of stemming the economic decline of America’s middle class.


LIKE My Facebook Page

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  The Triumph of Bad Ideas (6+ / 0-)

    That may well be what they call this era in American history. Well done sir.

  •  It's Not the Media's Role to Inform But t Advocate (2+ / 0-)
    Recommended by:
    ProgressiveLiberal, quill

    for their corporate and rich owners. The mainstream is never going to hear from the likes of Krugman.

    None of these rw economic goons is stupid enough to believe their claims. It is indeed a triumph of bad ideas that are being carried out because they work exactly as intended.

    Not marketed, but intended.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Mon Jan 07, 2013 at 11:48:28 AM PST

  •  Tipped, rec'd, carry on./ (1+ / 0-)
    Recommended by:
    ProgressiveLiberal

    "Democracy is a life; and involves continual struggle." ---'Fighting Bob' LaFollette

    by leftreborn on Mon Jan 07, 2013 at 11:52:26 AM PST

  •  When they say, "Lowering taxes creates jobs," (2+ / 0-)
    Recommended by:
    a2nite, ProgressiveLiberal

    in a sane world where logic and facts apply, we could then say, "Sorry, but we already tried that, and not only did it NOT create jobs, it increased the income inequality, and increased the deficit that you conservatives are so-o-o-o concerned about only since a Democratic President is in the White House.  So, accordingly, we're going to use sound economic principals to get us out of this recession."

    But we live in a world where the House passes jobs bills that contain no jobs programs, and actually hack away at women's reproductive rights, while refusing to even bring up for a vote legislation that would actually provide Americans with jobs.

    In this world, Rupert Murdoch's Fox is considered news by a pretty big section of conservatives.  If you use facts to point out the rarely if ever corrected errors, the blatant lies, and the completely-made-up conspiracies, a majority of Fox listeners will dismiss you out of hand because your information did not originate from someone on Fox news.

    In this world, McCain is on the Sunday shows only less often than the hosts who seem unable to call him on his frequently just poor loser attitude nor his hypocritical attacks on policies he used to espouse.

    Yeah, in the current world according to the GOP, we need to slash entitlements.  Well, as long as we're talking about entitlements that go to poor people, old people, disabled or disadvantaged people.  But do not even hint about cutting entitlements to big oil, big coal, big farms, big pharma, big military vendors, big insurance & HMOs, oh--or big banks, and God forbid anyone touch the varied and multiple tax dodges for rich people--and corporations--because, say it with me now, "Corporations are people too."

    We live in a world where RWNJ say the constitution doesn't allow gay marriage but it does allow the purchase and possession of assault weapons. Women don't have a say over their own bodies; that's for men in legislatures to decree. Freedom of religion only means the RW evangelicals should be allowed to insert their religion where they deem necessary.  The idea that freedom of religion also means fredom from religion, well, anybody who thinks that is going to hell, for sure.

    Since the RW has taken over the Republican party, they wear obstruction like a badge of honor.  We have got to face reality.  Sound economic policy based on sound proven economic principals is apparently doomed from the start as long as the far RW are in charge of the GOP and "regular" republicans (are there any remaining?) are running scared of primary challenges.  Bipartisanship is going to have to be the progressive and moderate wings of the Democratic party working together.  And that means we also have to hold democrats responsible, too, when they advocate for corporatations over citizens. We have our work cut out for us, and we need to start yesterday for 2014 & 2016 House and Senate races.

    Sheesh.  Got a bit off your main point about the economy, there, (to understate it-ha!) but take it as a compliment.  Your diary hit a nerve; I consider that good writing.

    "In politics stupidity is not a handicap." Napoleon Bonaparte

    by citylights on Mon Jan 07, 2013 at 01:35:57 PM PST

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site