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FDR failed to restore the economy and so has Obama. FDR did not really care much about economics and was focused on changing America to some sort of nanny state controlled by the Democrats. Obama is following down the same failed path.
I did read the article, and he continues his slant that the government is the one who can fix the economy for the short term, if not for those pesky republicans, and Obama and his party not pushing through more spending. Like many any other data analysis positions 2 people can look at the data and get 2 different perspectives.
Fact is the US government tried 2 different stimulus packages in 2 years, and depending on who you listen to neither had nearly the effect that many were pushing, including Krugman, Krugman's response was that they did not spend enough, as opposed to admitting maybe something else should have been done.I think he is also failing to realize that the US government increased their spending to as high as 25.2% of our GDP, and has added to the debt up to the point of the debt being more then the GDP. The US government did not have any more money to stimulate the economy, reality Greece was beginning to get into trouble in 2008-2009 when their debt was 108% of their GDP, they tried to spend their way out of trouble, just as the US government is doing now.
While I do agree with some of his assertions, I in fact wrote a paper for an advanced finance class in 2006 showing the personal debt throughout the country was the worst it had ever been even directly prior to the great depression and that we were heading in that direction again, in that class more then a few called me crazy, so I agree the economy was in terrible trouble, and it was going to take time to recover.
Here is my problem with this article, Obama, Bush, and Krugman when it comes to the economy. Krugman, Bush, and Obama all seem to believe in the same crap, the government should spend to get out of the recession, they believe in free trade, and using other means necessary to bail us out. While that may have once worked 100 years ago, I believe that government spending does not work any longer. There are several theories about the great depression and the cause and length, many will argue that government spending got us out of the mess, and it did due to WW2, however all the social programs that were added did not show much of a benefit. countries like the USA, Greece, the USSR towards the end of the cold war, and Spain now have all tried to spend their way out of financial trouble, it no longer seems to work. Meanwhile through the spending, the QE inititives through the federal reserve, and the stimulus packages, not only is the economy recovery not being sped up, but it is in fact devaluing the dollar, making life harder on all but the super wealthy as food and gas prices kill us all.
Krugman is a big proponent of free trade and comparative advantage, personally I agree with him on that, but this article is ignoring that the US has a comparative advantage that Obama and his administration refuses to utilize, and that is that the US has natural resources that most of the rest of the world does not have as readily available as we do. One way their economy is going to recover is through job creation, opening up federal lands to drilling will create tens of thousands of jobs, building a pipeline to move natural gas more easily will also create more jobs and long term income, not destroying coal producers will help long term. Lay off the farmers who you are trying to hit with fees amounting to an average of $23000 if they own cattle. Allow someone to build an oil refinery or two.
You want to start an economic recovery, start using your comparative advantages now, while allowing investments into future alternative energy and programs for a future comparative advantage. For an illustration on what could happen with allowing these companies to operate, look into the economies of northern Colorado, Wyoming, North Dakota, and Texas, all areas where drilling is occurring on private land and all either have not experienced the recession or are recovering much quicker then anywhere else in the country.
Romney wants to do allow us to do that, on top of that Romney wants to cut government spending, and cut taxes. personally much of the government spending needs to be stopped including corporate welfare, handouts to foreign countries, and a few of the social programs. Cutting taxes will help. But at the end of the day many of the factories are in China now, call centers are in India, textiles are in Mexico and south America. Our natural resources are all we have left to get out of this mess, once we do that, and people are working and the government is paying down the debt, then they can go back to worrying about grants to alternative energy development, and future production capabilities that the US can later use to keep their economy growing.
Your exactly right. We have the means to stimulate our economy the right way, by utilizing or natural resources, and, as you pointed out, cutting spending and cutting taxes, such as the Corporate tax rate and the Capital Gains rate.
Here in Ohio, we have begun to see how our natural resources work to improve the economy. We are sitting on top of the huge Marcellus/Utica Shale, and it is already putting money in pockets, as landowners receive lease payments (still waiting on our check). One land owner with 240 acres a few miles from us received over $700,000 last spring for leasing his mineral rights to Halcon. This has been a boon to the local economy, as one might expect.
Further, when actual production begins, we get royalties of 17%. This, for a land owner with even only an acre of land, provides a lot of income (they will put together blocks of 640 acre "drilling units", and land owners in those blocks get a portion of the 17% royalty depending on the size of their property). They showed the math at a local meeting. It is no small amount, even for that one acre.
Beyond that, the abundant and affordable energy provided is what our industries need. Barack Obama's plan jacks up the price of energy and kills our industries and causes job loss. Without affordable and abundant energy, we cannot become prosperous. And that is the Achilles heel of Obama's policies.
The probelm is that how do you know that mitt is going to do what he says? He already has be caught changing his position 180 degrees on a myriad of points. mitt has proven that he will say anything to get elected that is what is disturbing on top of the fact that he is more than willing to go to war with Iran and or Syria at the expense of the poor and middleclass young men and women.
Can you cite some examples of Mitt Romney's changing his position? I haven't seen any.
You're worried about going to war with Iran and Syria now that Barack Obama has just about made it an inevitability because of the mess he has created in the Middle East by empowering and facilitating a take over by the Muslim Brotherhood, a terrorist organization that supports al-Qaeda, and Hamas.
Do you not understand what Barack Obama has done? Obama has destableized the entire Middle East, and put Israel and the United States in great danger. We are in greater danger today than we have been in many, many years, all because of Barack Obama's championing of the Muslim Brotherhood and the so-called "Arab Spring." Democracy, my foot! What exists now is pure chaos! Well, at least if it is "Democracy," it proves that democracy really is mob rule!
It will take a miracle and many, many years to undo the damage Obama has done to our foreign policy, and to keep Iran from obtaining a nuclear bomb without going to war.
The probelm is that how do you know that mitt is going to do what he says? He already has be caught changing his position 180 degrees on a myriad of points. mitt has proven that he will say anything to get elected that is what is disturbing on top of the fact that he is more than willing to go to war with Iran and or Syria at the expense of the poor and middleclass young men and women.
Economically his plans don't add up. you can not reduce revenue of the government by trillions, increase spending and reduce a deficit. It did not work under Reagan, or Bush. You will have the same result, the deficits will soar. each of those 2 tripled theirs... I suspect we will be closer to 22 trillion after 18 months or so...
I think you got the point, because I was running out of room
You're worried about going to war with Iran and Syria now that Barack Obama has just about made it an inevitability because of the mess he has created in the Middle East by empowering and facilitating a take over by the Muslim Brotherhood, a terrorist organization that supports al-Qaeda, and Hamas.
Huh, no because one of the main reason was because bush invaded a country that had nothing to do with an attack on us and started torturing innocent people and holding them indefinitely. This created a breeding ground for new terrorist which just happened to spread throughout the world
Do you not understand what Barack Obama has done? Obama has destableized the entire Middle East, and put Israel and the United States in great danger. We are in greater danger today than we have been in many, many years, all because of Barack Obama's championing of the Muslim Brotherhood and the so-called "Arab Spring." Democracy, my foot! What exists now is pure chaos! Well, at least if it is "Democracy," it proves that democracy really is mob rule!
This is exactly what bush/cheney did, he scare the bejesus out people so that they would do anything that he wanted, including taking away some of our rights through the Patriot Act. Gee, you sound mighty familiar
It will take a miracle and many, many years to undo the damage Obama has done to our foreign policy, and to keep Iran from obtaining a nuclear bomb without going to war.
Hell we are still trying to calm down the clustertruck that bush did, so what in D hell are you talking about?
Economically his plans don't add up. you can not reduce revenue of the government by trillions, increase spending and reduce a deficit. It did not work under Reagan, or Bush. You will have the same result, the deficits will soar. each of those 2 tripled theirs... I suspect we will be closer to 22 trillion after 18 months or so...
You forgot about the 2-3 submarines that cost almost a billion a piece and the 15 ships at price of 300 million that the Navy never asked for.
On a factual basis Krugman is completely correct. A long period of slow growth to no growth is always what happens after a major econmic bubble pops. It was true in Japan during the 90's and we've seen it dozens of times going back to Dutch tulip mania in the 17th century.
Economically his plans don't add up. you can not reduce revenue of the government by trillions, increase spending and reduce a deficit. It did not work under Reagan, or Bush. You will have the same result, the deficits will soar. each of those 2 tripled theirs... I suspect we will be closer to 22 trillion after 18 months or so...
Except for none of the stuff you listed, is what Romney said he'd do..
And it absolutely did towk under both Bush, and Reagan, and Clinton. When they cut the taxes, the ececonomy grew, and the tax loss was more than made up by economic growth.
Sure, there is a bottom tax rate where it doesnt increase revenues, and I dont know where it is, but to proclaim it hasnt worked before is completely false.
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