Liberal statist economist Paul Krugman gives dire warnings of not pulling the plug on the massive government spending spree that was the template for late 2008 and all of 2009. While chiding Americans for spending beyond their means, Krugman then forges ahead with demanding the nation as a whole continue to do just that or we face certain economic disaster.
Krugman's true message here is directly to the liberal Democrats calling the shots - telling them that the free market economy is still weak enough to be obliterated, and that stimulus II could finish the job...
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The Obama fiscal stimulus plan is expected to have its peak effect on G.D.P. and jobs around the middle of this year, then start fading out. Thats far too early: why withdraw support in the face of continuing mass unemployment? Congress should have enacted a second round of stimulus months ago, when it became clear that the slump was going to be deeper and longer than originally expected. But nothing was done and the illusory good numbers were about to see will probably head off any further possibility of action.
Op-Ed Columnist - That 1937 Feeling - NYTimes.com
Krugman's true message here is directly to the liberal Democrats calling the shots - telling them that the free market economy is still weak enough to be obliterated, and that stimulus II could finish the job...
___
The Obama fiscal stimulus plan is expected to have its peak effect on G.D.P. and jobs around the middle of this year, then start fading out. Thats far too early: why withdraw support in the face of continuing mass unemployment? Congress should have enacted a second round of stimulus months ago, when it became clear that the slump was going to be deeper and longer than originally expected. But nothing was done and the illusory good numbers were about to see will probably head off any further possibility of action.
Op-Ed Columnist - That 1937 Feeling - NYTimes.com
