Sunday, August 3, 2014

Krugman: The Fiscal Gap Is a Problem

Paul Krugman is out with a goofy post today arguing that there is no need to cut government spending:
Dr. Evil-type invocations of two hundred trillion dollars serve no purpose at all, unless your real goal is to scare people into preemptively dismantling the welfare state.
Yet, in the same post, he recognizes reality (if only for a paragraph)
 It’s true that if current policies are continued with no change, we’re highly likely to face an unsustainable fiscal gap — a gap that can’t go on forever — if we look far enough away. Stein’s Law therefore applies: if something can’t go on forever, it will stop. Sooner or later, we will have some combination of benefits cuts and/or revenue increases.

1 comment:

  1. amongst the other problems:

    America’s Structural Job Depression Is Here To Stay

    My co-producer, John Titus, made a fascinating and stunning statistical discovery discovery buried right in the monthly non-farm payroll statistics. Regardless of whether the Government numbers are bona fide or fraudulent, it shows why even the data itself shows that the U.S. has been net-net losing jobs since 1992.