News, Nobel Prize Winner's Recession Solution. (bankrupt, loan, capitalism, debt)

[JD59]

Nobel Prize-winning economist Paul Krugman said the government could borrow up to $5 trillion -- if needed -- to speed up a recovery from the recession.

A stimulus plan of that size is probably not needed, but Krugman said he believes the $775 billion proposal from President-elect Barack Obama isn't big enough.

ABC News: Nobel Prize Winner's Recession Solution

[ViewFromThePeak]

Originally Posted by John1960

Nobel Prize-winning economist Paul Krugman said the government could borrow up to $5 trillion -- if needed -- to speed up a recovery from the recession.

A stimulus plan of that size is probably not needed, but Krugman said he believes the $775 billion proposal from President-elect Barack Obama isn't big enough.

ABC News: Nobel Prize Winner's Recession Solution

Winning the Novel prize is just window dressing nowadays, especially in the peace and economics field. Never mind that Krugman won it in an unrelated field to business cycles.

Keynesian retards are destined to bankrupt the nation.

[chet everett]

Many people that are smarter than Krugman and have much less of a political ax to grind disagree about the likely outcome of "stimulus": Greg Mankiw's Blog: Triangles vs Gaps

[cobolt]

I've heard very few cases where borrowing money gets one out of a bind in the long run, be it individual, company, or otherwise. I think we have enough examples with the TARP fiasco to call it good.

[evilnewbie]

Nobel prize = crap... it used to actually mean something, nowadays its crap... and the guy who advocates BORROWING 5 trillion dollars = moron...

[RangerDuke08]

LOL! Is he saying to take a loan to make a gamble on one hand of blackjack? Not the soundest of solutions but hey the bigger the risk, the greater the reward.

At least he didn't say to enter WWIII to fix our financial crisis, or did he?

[gwynedd1]

Originally Posted by John1960

Nobel Prize-winning economist Paul Krugman said the government could borrow up to $5 trillion -- if needed -- to speed up a recovery from the recession.

A stimulus plan of that size is probably not needed, but Krugman said he believes the $775 billion proposal from President-elect Barack Obama isn't big enough.

ABC News: Nobel Prize Winner's Recession Solution

Hi John1960,

He is probably right(again holding my nose with our debt money system). Up until the point of a bit of slight inflation we should do this and I would not be surprised if it were 5 trillion. Certainly some public works could be useful but the majority of it should be simple tax cuts or even suspending income taxes . Half the country standing around doing nothing isn't saving, its sitting around doing nothing.
To stop the wreckless consumerism we need energy taxes to sustain the alternative energy market and then do something about the housing tax write offs that encourage excess housing etc.

[hindsight2020]

Why does everybody dance around fixing the actual problem, debt based monetary policy? When did it become gospel that the very thing that keeps us enslaved is untouchable? Oh that's right, private interest.....I (meaning the proletariat) have to enslave myself and keep quiet as an obedient house slave to fund and defend the "freedom" of the few "capital owners" to sustain their wealth control and therefore their social and economic status. We are the proverbial equivalent of the police officer that patrols the communities he cannot afford to live in; and that's the best we got going? All because utilitarian economic schools of wealth distribution are painted in this country as the devil incarnate?

Screw that, the innovation and capitalism mantra in this country is a fallacy anyways, I don't need to enslave 299 out of 300 million people in this country just so Steve Jobs can have the "freedom" to copyright the next proverbial useless iPod and people can keep dreaming about becoming the next american idol. Talk about lack of balance. The end of fractional reserve banking is in order, all this intellectual masturbation about how to borrow and how much to borrow is an irrelevancy. The slaves (you) have no footing from where to assert that government can't get anything right, since they don't work on your behalf (like they are supposed to), they work for your master. A little utilitarian economic policy injection (yes that's wealth distribution toward our side of the house my fellow slaves) would ensure that the government becomes once again a mouthpiece for our interest, and therefore is also incumbent on ourselves as the People to have the sacred responsibility to keep Govco in check. This is the true definition of patriotism in my book, and is a burden that shouldn't be taken lightly, but does fare much better than accepting our own stupidity and selling our soul to the private interest to tell us what's good for you. I see no difference between the current capitalistic system of indentured monetary slavery and outright communism. Our master is private hands corporate state, if you want to get technical we live in a facist regime, I see that no more beneficial than outright communism, again from the point of view of the proletariat...and no your joke of a 401K doesn't make you a capital owner of anything.

End the Federal Reserve, eliminate private banks's ability to create money out of thin air, rob Peter a little to pay Paul since after all humans are not commodities, sorry Steve no Ipod for you, engage the citizenry in their own stake (government) as the sole culprit of their economic woes (since we have now reassigned Govco the responsibility of managing and creating the currency), and incentivize production that actually gets us to export real THINGS again, and we stand a chance at retaining a semblance of the country we think we are. Sounds simple to me, you can mail me the economic Nobel prize this year......Of course none of this will happen voluntarily, as Peter (the capital owners) doesn't believe in utilitarian economics, and hides under the "capitalism=democracy" misnomer to sustain his position in the economic ponzi scheme we call the US economy, to that I have no answer as to how to change it other than major economic failure that would lead to unrest and a shift in power to those who understand the problem like I do. The odds aren't good as Americans are way too obedient to ever 1) recognize there's a problem they can actually change and 2)are too risk averse to put their own stake in what SEEMS to them as an academic abstraction (their own economic dispossession mind you) to make a difference. So we talk about managing debt instead...*ugh*

[killer2021]

Good luck getting that much money without massively debasing the dollar.