Tags: paul | krugman | spending | austeroty

Krugman: Don't Wait, You'd Better Spend Now

Monday, 28 Jun 2010 08:20 AM

The move to austerity is dangerous and wrong, says Nobel Prize winning economist Paul Krugman.

"Spend now, while the economy remains depressed; save later, once it has recovered," Krugman writes in The New York Times. "How hard is that to understand?"

“Very hard, if the current state of political debate is any indication.”

Around the world, politicians seem determined to do the reverse, even in the United States, where a severely depressed economy is inflicting long-run damage, Krugman notes.

“Every year that goes by with extremely high unemployment increases the chance that many of the long-term unemployed will never come back to the work force, and become a permanent underclass,” Krugman observes.

“Penny-pinching at a time like this isn’t just cruel; it endangers the nation’s future,” says Krugman. “And it doesn’t even do much to reduce our future debt burden, because stinting on spending now threatens the economic recovery, and with it the hope for rising revenues.”

“The responsible thing, then, is to spend now, while planning to save later.”

Even as the austerity measures of Greece’s government of Prime Minister George Papandreou produce deepening widespread poverty, the trade union federations are working to ensure that all opposition is strangled, beforeitsnews.com reports.

ECB auditor Klaus Masuch, warned, “Greek people have to go through a difficult time.”

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The move to austerity is dangerous and wrong, says Nobel Prize winning economist Paul Krugman. Spend now, while the economy remains depressed; save later, once it has recovered, Krugman writes in The New York Times. How hard is that to understand? Very hard, if the...
paul,krugman,spending,austeroty
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2010-20-28
Monday, 28 Jun 2010 08:20 AM
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