Economics Corner with Paul Krugman and Winston’s Mom

by | Jul 23, 2021 | Economy | 158 comments

No one called me about covering their links so I decided to toss this together.  More dumbfuckery from this guy as always.

 

Once again I refuse to force you to pay for journolism so here’s the link:

The way it was: Some years ago, I attended a meeting in which President Barack Obama asked a group of economists for unconventional policy ideas. I distinctly remember him saying: “Don’t tell me that I should spend a trillion dollars on infrastructure. I know that, but I can’t do it.”

Even a broken clown is right twice a day.

The way it is: Top Democrats have agreed on a proposal to spend $3.5 trillion on public investment of various kinds, to be passed via reconciliation on top of a $600 billion bipartisan plan for physical infrastructure spending. And some news reports are treating this deal as a defeat for the left, because Bernie Sanders proposed spending even more.

A trillion here, a trillion there.  Pretty soon you are exchanging lead for money.

Obviously, the reported agreement is just a proposal, and turning it into actual legislation will require agreement from every single Democratic senator. Still, there has clearly been an incredible change — a sharp move to the left — in what is considered politically realistic.

So how did big spending get its groove back? Let me offer five explanations.

First, COVID-19, and the extraordinary policy measures America took to limit economic hardship during the economy’s induced coma, had a lasting impact on economic ideology.

Large-scale disaster relief was obviously necessary; even Republicans voted for it. But the positive role played by the government during the pandemic helped legitimize an active role for government in general.

Second, the legend of Reaganomics has become unsustainable. It used to be common for conservatives to assert that Reagan’s tax cuts and deregulation ushered in an era of unprecedented economic success; in fact, I still hear that sometimes.

But these days the response to such claims is, “Do you even FRED, bro?” That is, have you even looked at the numbers available in places such as the wonderfully usable Federal Reserve Economic Data site? Overall economic growth has been slower since 1980 than it was in the decades before; thanks to rising inequality, growth for the typical family has been much slower. Real wages for most workers have stagnated.

For the record, this guy doesn’t even FRED, bruh.  Here’s the CPI since 1957 and consider the CPI doesn’t even account for the things you probably spend the most money on:  food and energy.

While I might agree with you on the mythos of Ronnie, let’s not pretend your method was never tried here, or anywhere else with no ill effects related to inflation.

And while most voters don’t FRED, they do have a sense of the underlying reality. Donald Trump’s actual policies were a replay of failed Republican orthodoxy, but his campaign slogan reflected the public’s realization that the post-Reagan era has, in fact, not been so great for workers.

Third, debt scaremongers have lost most of their credibility. The fiscal crises they kept predicting kept not happening. Leading economists have pointed out that even though debt numbers sound big, low interest rates mean that the cost of servicing government debt looks easily manageable. The Biden administration’s budget proposals note that real interest payments — that is, payments adjusted for inflation — are actually negative.

Also, many of the people who hectored the Obama administration about debt seemed to reveal a lot about their true motives by going quiet during the Trump years.

Like Hell I’m quiet.  I’ve been calling you a dumb shit since Gerald Fucking Ford administration!

Now, it’s true that the big spending plans in the pipeline include “pay-fors” — that is, they include offsetting savings and revenue increases, so they won’t explicitly involve simply borrowing to pay for public investment. But the dissipation of debt panic means that Democrats won’t worry too much about how convincing those pay-fors look.

Fourth, the field of economics has become much more evidence-based than it used to be — and economists have assembled a great deal of data pointing to the benefits of public spending, especially aid to families with children. Conservatives will still insist that all government spending is wasteful, because that’s what they do, but the fact is that there is now strong evidence for major payoffs for the kind of spending Democrats are proposing.

The increasing use of scientific jargon has permitted the state’s intellectuals to weave obscurantist apologia for state rule that would have only met with derision by the populace of a simpler age.  A robber who justified his theft by saying that he really helped his victims, by his spending giving a boost to retail trade, would find few converts; but when this theory is clothed in Keynesian equations and impressive references to the “multiplier effect”, it unfortunately carries more conviction.  And so the assault on common sense proceeds, each age performing the task in its own ways.”  – Anatomy of the State

I wonder if he realizes he’s a tool for despots to satisfy what little conscience in their endeavor to pillage entire nations?  Its one thing to don the gimp suit to scratch an itch, but imagine having to wear that suit everyday.  What a bitch.

An aside: To the extent that any spending will receive bipartisan support, it will be on “hard” infrastructure such as roads and bridges, which do indeed need a lot of work. But for what it’s worth, there’s an even stronger case for very high returns on “soft” spending on people, which makes up the bulk of the Democratic proposal.

Finally, Republicans have lost interest in policy.

During the Obama years, GOP politicians mobilized their base with lies about Obamacare (seen any death panels lately?) and scare stories about budget deficits. Under President Joe Biden, they’re mobilizing the base with lies about a stolen election and insane claims about critical race theory.

How stupid is your audience?  They removed the legislative language from the ACA that enabled “death panels”, dumbass.  Here’s an editorial first lamenting they took it out, and then suggesting ways to address end of life issues.  I wonder why they took that out?  MAYBE CONSERVATIVES BITCHED ABOUT DEATH PANELS SO THEY TOOK IT OUT.  That implies they were interested in policy.  Is it a dumbass policy?  Yes, and those cucks were happy to contribute.

Clearly, the Republican descent into madness is a bad thing; if you aren’t terrified for America’s future, you aren’t paying attention. But the craziness has, perversely, helped smooth the path for Democrats’ economic and fiscal agenda. Oh, old-line senators are still mumbling the usual denunciations of bigspendingsocialistjobkillers, but the GOP’s energy is focused on defeating imaginary satanic conspiracies, not blocking real Democratic spending plans.

Again, the big spending plans now on the table might still not pass. Democrats have a razor-thin majority in Congress, and failure remains an option. But right now, it looks as if big spending is making a comeback — and it’s doing so for all the right reasons.

Blah blah blah.  Money printer go BRRRRRRR. Putz.

About The Author

Winston's Mom

Winston's Mom

Biological mother of Winston.

158 Comments

  1. The Fool

    JFC, all this mental depression, followed by the real thing, let me off this trainwreck!

    • Winston's Mom

      Nah, keep riding the crazytrain.

  2. Count Potato

    “Large-scale disaster relief was obviously necessary; even Republicans voted for it. But the positive role played by the government during the pandemic helped legitimize an active role for government in general.”

    He writes this like he thinks it’s a good thing. Which he does. Because he’s an asshole.

    • blackjack

      He also falsely asserts that government played a positive role during the pandemic. They caused the whole fucking thing. They basically bribed people to avoid getting fed to the chippers. and they still fucked all of us in ways that will only be clear in the long run. Personally, I can count a half dozen small businesses that are gone forever. For no good reason.

      • Festus

        Yep. I’ve seen dozens of small operations shut down that will never reopen. What about those people? Fuck your Grandma! Our overdose death rate exceeds the “Covid” one. Half of the small storefronts are boarded up. I tried to go to KFC the other night and they were closed.

  3. Raven Nation

    For a long time, I wanted to believe that post-Nobel Krugman was just a decent guy who was wrong about a lot of stuff. But now I’ve come to the conclusion that he’s an execrable human being.

    • Draw Me Like One of Your Tulpae, Jack

      execrable

      One of my favorite words.

      Romance novels FTW!

      • rhywun

        One of my favorite words.

        #metoo

        It’s so damn useful lately.

      • Gadfly

        My favorite word is defenestrate. The fact that there’s a dedicated word for throwing someone/something out a window pleases me to an irrational extent, plus the word is just fun to say. Plus it has a good deal of utility in a figurative sense. Ex: “Paul Krugman defenstrated his knowledge of economics in order to become an opinion writer”.

      • Raven Nation

        +1 Prague

  4. rhywun

    the cost of servicing government debt looks easily manageable

    LOL okay then. Nothing to see here.

    • blackjack

      Because interest rates are low. Issuing trillions of dollars of bonds will have no effect on those rates, right? There’s literally no point where this money is going to get more expensive, in Krugnut’s world.

    • Fourscore

      Stop the jokes, you’re killing me

      /old people on SS

  5. The Late P Brooks

    Large-scale disaster relief was obviously necessary; even Republicans voted for it. But the positive role played by the government during the pandemic helped legitimize an active role for government in general.

    Ow, my head.

    • Winston's Mom

      I have a cure for that.

  6. Gadfly

    The fiscal crises they kept predicting kept not happening.

    I’ll give him this, he’s got quite the audacity for making this statement when inflation is the highest it’s been in decades and the Fed has removed the most effective tool for fighting inflation from their tool belt (higher interest rates). That certainly looks like the cusp of a crisis to me.

  7. The Late P Brooks

    Leading economists have pointed out that even though debt numbers sound big, low interest rates mean that the cost of servicing government debt looks easily manageable. The Biden administration’s budget proposals note that real interest payments — that is, payments adjusted for inflation — are actually negative.

    Free money. We’d be fools not to spend as much as we can print.

    • Fourscore

      MMT says it can last forever with the right people in charge. Any deviance is caused by not the right people being in charge

      /Bernie S.

  8. rhywun

    insane claims about critical race theory

    I guess this went to press before the NEA gave the game away. Oopsie, caught in another lie.

  9. blackjack

    if you aren’t terrified for America’s future, you aren’t paying attention.

    He accidentally made a decent point. However, he ascribes the wrong causation, of course.

  10. Aloysious

    Fuckhead Krugman makes me think, and I quote, ” Heads. Spikes. Walls.”

    • UnCivilServant

      Tzompantli?

      We do seem to be encouraging the worship of the Aztec pantheon, some of their other habits might come in handy.

      • limey

        That seems like a nice way to display things. Maybe not human skulls. What’s something less violent and deathy?

  11. Gustave Lytton

    “hard” infrastructure such as roads and bridges, which do indeed need a lot of work.

    How years of “fixing” infrastructure will it take til it’s done? Need to start replacing all of the shitty work done under Obama’s shovel ready projects, years ahead of when ir should be.

    • rhywun

      The beauty that it’s never done – especially when you have labor unions skimming billions off the top.

  12. prolefeed

    The vaccine passport thing was a big NothingBurger. Not a peep about anyone’s confidential health info. Just told us Austin was now at a “Stage 4!!!!!”, so everyone had to wear masks.

    Me being me, I strolled in, sans mask, no one saying a damn thing. 🙂

    My wife didn’t want to go after she sorta pried outtakes me that I was gonna tell them that vaccine passports were now illegal, but talked her down from that, and so here we are waiting for the show about Oscar Wilde to begin.

    • prolefeed

      “Outta me”, not “outtakes me”. FN autofuckitup.

      • limey

        Are you being meta?

        /Shirley

    • blackjack

      Enjoy your play. I’m glad you don’t have to do battle for it.

    • Ted S.

      +1 intercrural sex

      • limey

        What’s that about rural sex?

      • limey

        Boy howdy, she can dust my crops any day.

      • dontreadonme

        Okay that is awesome. I had a country girl from Oklahoma once upon a time. She had her priorities right. Seeds in the ground then seeds in the mound. Made for a lot of Winter babies.

    • blackjack

      Austin was now at a “Stage 4!!!!!

      The stagehands looked confused and said, ” There’s only the one big stage!”

  13. limey

    Krugman is a product of his insular existence, being lauded with praise, shielded from any challenges that might point out how obviously he’s sold out. He says what he knows his patrons want to hear, safe in the knowledge that they assist in protecting him from any criticism, and he can kid himself that his Nobel prize was the rite by which he ascended to being a made man, completely untouchable. Krugman is naked. Deep down, he knows this, but his patrons, masters, and all who rely on his word to present as somehow authoritative all imagine his wardrobe for him. We see his withered form clearly. His shame is on display for all to see.

    • dontreadonme

      Well said. Indeed.

    • Winston's Mom

      Yes. Fuck that guy!

  14. The Other Kevin

    Reading Krugman is a very jarring reminder that some people live in a very different reality from mine.

  15. Tres Cool

    Im off to work, kids. Hold it down for me while Im gone.

    • rhywun

      Oh hell yeah ?

      Love Numan

  16. The Other Kevin

    I’m watching people walking into an empty stadium waving flags. Call me sentimental but I still get into this.

    • trshmnstr the terrible

      I stopped watching after about 45 minutes. NBC’s programming choices have made it unappealing to continue.

      However, that chevy commercial with the cat was top notch.

      • Yusef drives a Kia

        BTW, buy a Latitude 64 River, don’t ask, just do it, 77-12
        you will love he thing, my first non Innova disc,

      • rhywun

        Guh it’s not even live. Pass.

    • The Other Kevin

      We paused a few times so now I can skip the commercials. I’m pleased with the artistic part being shorter, less weird, and not being a tribute to some government agency.

    • rhywun

      Nice. A classic.

      • Yusef drives a Kia

        honestly, I thought you might, so i did,
        Cheers!

    • J. Frank Parnell

      YES.

      Saw them live a couple years ago at an 80’s club, great show. I should be seeing them again in December, I think – was supposed to see them last spring, but the show was postponed because Dr. Fauci was giving money to the Chinese to develop bioweapons some random thing happened for no reason.

    • R.J.

      Challenge accepted.

    • Ownbestenemy

      Can’t get stoned..wish I could but I am all for it buddy.

  17. one true athena

    So to summarize Das Krugman: because the ungodly amount of money the US spent in 2020 didn’t instantly collapse the economy, it’s fine to spend ungodly amounts of money again in 2021. Because spending trillions when you used to spend billions is really only a couple bucks more.

    These people should be forced to count to a trillion before they’re allowed to spend that much.

  18. Derpetologist

    odds and ends

    Got a flash burn on my upper arm. My welding sleeve slipped and I didn’t notice, so now I have a tan line from hell. The blister was big enough to put a gift shop on.

    Also got issued a harness for when I’m working high up. I’d rather hang off a scaffold than look at a screen all day.

    During my road trip out west last month, the steering on my car went out (I could barely turn left) near Baker, NV (population 58). Luckily, there was a mechanic and he let me camp in his backyard until the parts came. Upon further inspection, a weld broke on the sub-frame. He advised me to junk the car. So I did and got a relative to give me a ride to Pahrump where I bought a nice used car with only 48k miles. Unfortunately, the title seems to have gotten lost in the mail. So I have to fix that somehow.

    satire idea: Scientists Redefine Absolute Zero as The Number of People Watching CNN

    • Yusef drives a Kia

      Burns happen, a 575V arc is maybe deadly, but definitely a burn, take care!
      /Last Week, ouch

    • blackjack

      I’ve gotten burned by welding flash before. It ain’t fun. I also did the camping while broke down on the road thing. Diff went out in my ’63 Chevy truck in Coalinga springs, CA. Got towed to a yard in the middle of the central valley and waited a day/night until a used one was delivered and then used the guy’s tow truck as a lift to install it in his dirt driveway. Ah, to be young again!

      • Yusef drives a Kia

        “Ah, to be young again!” Ya, fuck that, I’ll throw money at it, and you know I play disc all 0over, so i still travel,

    • Festus

      Blocked in Country for some reason but yes, Debbie was fine.

  19. Festus

    Wow. Mr. Krugman has really gone off the deep end.

    • Yusef drives a Kia

      Did you stop to consider, maybe She is right and you are just fucked up in the head?
      Cheers!

  20. Derpetologist

    other satire ideas

    Space Force Gear Given to Marines Just to See What Happens

    Russia Offers Advice on Preserving Biden in See-Through Coffin

    Indiana To Be Renamed Nativeamericana

    Scientists Propose Building Wind Turbine In Front of Joy Behar

    • Festus

      Dual turbines, fore and aft.

    • Winston's Mom

      I got one for you.

      Lack of recognition as essential workers lead Grocery Union to strike, fired, and replaced by Nicaraguan migrant workers.

      Ahahahahahahahahaha

  21. Yusef drives a Kia

    “Space Force Gear Given to Marines Just to See What Happens”
    Marines establish Sex slave Colony, become mercs and coquer known space,
    there you go.,

  22. Brochettaward

    If the feds can just print all the money they want with no consequences, why the fucking obsession with raising taxes? I mean, it’s free money so you don’t need to tax that billionaire for going to space unless it’s just about envy.

    • rhywun

      it’s just about envy

      Asked and answered.

      • Festus

        On the more racist sites that is referred to as “Gibs me dat!”

    • Plinker762

      It’s to keep the normies thinking that there is actually some sort of system to government money.

  23. Tundra

    Krugman needs a good woman to fuck the stupid away.

    You up WM?

    How are you all tonight?

    • Winston's Mom

      Jesus Fucking Christ, what is wrong with you? I require payment—upfront—in full.

      • Tundra

        No one suggested a freebie.

        I’ve raised money for much lamer endeavors.

      • Winston's Mom

        Sure, but nobody asked YOU to play with Krugman’s dick.

      • Tundra

        I don’t think I even suggested that.

        Just sayin’.

      • Winston's Mom

        Touchè

        Touchè

      • Tundra

        I love this place.

        And you.

      • Festus

        Yep. That’s the ticket!

      • trshmnstr the terrible

        Krugman will gladly pay you in next tuesday’s dollars for a fuck today.

    • Yusef drives a Kia

      Hanging in and Happy Tundra, I resigned my position t Gourmet mushrooms, at least temporarily, and felling good about some new prospects,

      • Tundra

        Good luck to you, Yusef!

      • Yusef drives a Kia

        I have the Glibs, I’ll be fine,
        Cheers!

  24. The Late P Brooks

    Jesus Fucking Christ, what is wrong with you? I require payment—upfront—in full.

    Krugabe will gladly pay you Tuesday, with somebody else’s money.

  25. The Late P Brooks

    Something something great minds.

  26. Festus

    Imma play a game. How many beers can I consume after IRL convo with Yusef?

    • Ownbestenemy

      5? Miss you on zoom buddy

  27. Festus

    On Sunday I will grab the bull by the horns and finally dispose of the three coffee cups that have been sitting in the sink at one of my sites for months. I’ve been cleaning around them since March. It’s been a passive-aggressive battle. I don’t wash your dishes, bitches! Then I will feel like a big, strong man again.

    • rhywun

      I just cornered a creepy-crawly in a tumbler and tossed it out my kitchen window. I’m a man.

      • rhywun

        Not familiar with that. See the above Berlin link for the song that was actually running through my head. (Do remember that I am a child of the 80’s.)

    • Chafed

      It would be a shame if some of it spilled on the carpet/desk/chair/something nearby.

  28. Trigger Hippie

    So….I just completed my first interior wall to wall/ceiling to baseshoe job for New Boss basically by myself from start to finish on a shoe-string budget.

    First reaction to my new yet totally unexpected role as “My only consistent and reliable employee while I filter out the Craigslist scum so hopelessly incompetent and irresponsible that they ran out of “Free Shit” money and were forced to actually pretend to work:

    https://i.kym-cdn.com/photos/images/original/001/723/336/6c6.gif

    • Festus

      Good for you and good luck! I’ve done so many contracts solo my dink is but a nub.

      • Trigger Hippie

        Thanks, man It’s just that I wasn’t expecting nor told I was basically the “Main Guy” who had to manage a small crew of continuously rotating people who lied about their job experience to get a job because they were junkies who burnt through their free cash. I’ve fired a few people over the last two weeks due to sheer incompetence and I don’t care for it.

        I like to be given a task and being trusted to complete it with little to no oversight…I hate managing others. I have no intrinsic desire to be controlled or control anyone else.

      • Chafed

        You’ll never get a job as a pundit with that attitude.

      • Trigger Hippie

        *skims pre-approved talking points memo*

        Obey for the for the collective good!!!

        *reads next talking points memo*

        Resist for the collective good!!!

      • Chafed

        *strokes chin* This guy has talent. Sign him up.

      • Gustave Lytton

        I like to be given a task and being trusted to complete it with little to no oversight…I hate managing others.

        My twin!

  29. hayeksplosives

    First, COVID-19, and the extraordinary policy measures America took to limit economic hardship during the economy’s induced coma, had a lasting impact on economic ideology.

    Does anyone really believe this?

    • Ownbestenemy

      No idea. I’m guessing a sizable portion of society does thougb

      • Plinker762

        Would you rather believe the above or that our government is run by petty, narcissistic morons?

      • hayeksplosives

        I guess. So weird though. Hubs and I went to a local club tonight to see a band, small venue, maybe 50 people.

        One younger lady, maybe 30 yrs +/~ 5 was wearing a mask.

        Outside.

        WTF?

        I am forced to conclude that we are surrounded by a combination of power-tripping jackals, Karen-like bureaucrats who love to control their neighbors, and absolute sheep.

        The sheep are sufficiently bored with the luxury of living well that they snatch on to Covid, global warming, ozone holes, etc. They’ve become knee-jerk pessimistic.

        I firmly believe that’s why the birth rate of “advanced” societies has plummeted. Cultures that have lost hope, lost meaning in living, lost religion, don’t tend to want to bring people into the world.

        Question is, how do we reach people?

      • hayeksplosives

        But as Martin Luther said, “even if I knew the world would end tomorrow, I would still plant a tree.”

      • Ownbestenemy

        As we should act. I’m an optimist. There is hope and good out there, it is just hiding.

        Or I’ve been drinking and just think everything is a-okay.

      • hayeksplosives

        Everything is fine… we’re all fine here. How are you?

      • Plinker762

        One of the reasons I like to go to North Idaho. The backwards, hillbilly repuglitards never seemed to really get into the mask frenzy.

        The sad part is seeing people younger than 25 really buying into the masks.

        Not sure if they can be reached until the easy times are over, similar to an addict.

    • Chafed

      Yes. It’s bad economic policy but people definitely believe it.

    • Scruffy Nerfherder

      There are plenty who want to.

  30. Trigger Hippie

    I’m guessing a sizable portion of society isn’t capable of even parsing that sentence.

    • hayeksplosives

      Sometimes our “elites” get educated beyond the capacity to undertake rational thought.

      • Plinker762

        My sister has a Masters from MIT and her husband has a PHD from MIT. Both were for Warren. He would complain about the mistakes the managers at Schlumberger made but seemed think the liberal government functionaries could run everyone’s lives.

      • Ownbestenemy

        Funnily, both my brother and sis-in-law educated by Harvard are all for Warren

      • Chafed

        They believe smart people like them will be in charge. They never read Hayek and don’t know their own limitations.

      • hayeksplosives

        Hear hear!

      • Trigger Hippie

        Sometimes, eh?

        You’re too generous by half. 😉

  31. Trigger Hippie

    Dammit! For Obe(Yeah You Know Me!)

    • Plinker762

      Just figured you were channeling Brooks

      • Trigger Hippie

        Nah, just drinking. I’d love to blame it on WordPress but…

        *tips another*

      • Ownbestenemy

        Tips another myself….I get it

      • Trigger Hippie

        Cheers!

  32. Tres Cool

    suh’ fam

    yo whats goody

    • Gender Traitor

      Another lovely morning out here at Tranquility Base. Deliberately went to bed a little earlier than usual so I’d wake up in time to get maximum back porch time before it gets too bleedin’ hot to hang out here. Farmers’ market is the only thing on the agenda today, and that won’t open until 10. Indolence & sloth FTW!

      Oh – I’ll probably give myself a manicure with some of the new nail polish “strips” I just bought, but you guys don’t care about that crap.

    • Gender Traitor

      Just one more reason to keep up my perfect record of not flying commercial for… ::does math on fingers::…38 years. As if I needed another one.

  33. slumbrew

    It’s Saturday and I’ve been awake since 06:30 – wife left early to go meet friends for a hike & dog needed her walk.

    This is some bullshit – I don’t know you people do it. I sense a nap in my future.

    • Gender Traitor

      Saturday naps are the best! I don’t let myself nap on Sunday for fear I won’t sleep well Sunday night, but on Saturday it’s fair game. It’s the one time we let the cats in the bedroom while we’re sleeping.

    • Stinky Wizzleteats

      Damn your quick fingers.

  34. The Late P Brooks

    They never read Hayek and don’t know their own limitations.

    Dirty Hayek, Economic Enforcer.

    • Stinky Wizzleteats

      If the evidence of their own experience hasn’t convinced them already reading Hayek won’t help.

  35. Sean

    Mornin

    • Gender Traitor

      Good morning, Sean… and Stinky and Brooksie and Chippy and Slummy and, of course, muh homey! ::quick hug for homey::

      I have been remiss in my morning greetings. I hope you can find it in your hearts to forgive me. ::hangs head in shame::

      • Sean

        ?

  36. The Late P Brooks

    reading Hayek won’t help.

    I went to Harvard. What does that guy know about anything?