Krugman’s Delusion: The Past Year Proves Cutting Spending Doesn’t Create Jobs
Exactly what country does New York Times columnist Paul Krugman actually reside in? Before you answer, consider the following sentence from his article Monday: Although you'd never know it listening to the ranters, the past year has actually been a pretty good test of the theory that slashing government spending actually creates jobs. For the past year to be a good test of this theory, there would have needed to be a slash to government spending, right? Was this the case? Hardly. In fiscal 2010, total federal outlays were $3.72 trillion. In fiscal 2011 which ends September 30, we're projected to spend $3.83 trillion. That's a $111 billion increase. Yet this Nobel laureate in economics thinks government spending was slashed. In reality, since the last time such outlays declined year over year was 1965, we should really be testing Krugman, Obama, and the Democrats' theory that dramatic increases in government spending creates jobs. Democrats have been radically increasing outlays since they took over Congress in 2007. During this time, as spending rose by 41 percent, the economy lost roughly seven million jobs sending unemployment skyrocketing from 4.4 percent to 9.1 percent. If Krugman wasn't delusional, the above referenced sentence from his Monday column would read, “Although you'd never know it listening to the ranters like Barack Obama, the Democrats, Robert Reich, and me , the past four years have actually been a fabulous test of the theory that exploding government spending actually creates jobs. Isn't that really the only conclusion that one could draw given what's happened since this recent Keynesian experiment began in 2007? Of course, it's unfair to expect this Nobel laureate in economics to make such an obvious determination. He thinks a $111 billion increase in spending is a slash.
See original here:
Krugman’s Delusion: The Past Year Proves Cutting Spending Doesn’t Create Jobs
Posted by
on September 5, 2011. Filed under