Paul Krugman, Nobel Economic Laureate (stop laughing — if Barack Obama can get a Peace Prize then Krugman can get a Nobel for economics), has reviewed what he called a “seriously ugly jobs report” and concluded that more government spending is needed quickly:

The situation cries out for aggressively expansionary monetary and fiscal policy. Instead, however, all the political push is in the opposite direction.

Earlier a person on Twitter (if I remember who I’ll link it) wrote something along the lines of “this is like trying to cure someone’s meth-mouth by administering more meth.”

And for those conservatives who say that we need to “cut spending,” Krugman actually argues that we have been cutting spending and this latest lousy jobs report is the result of those cuts.

What does Krugman consider to be a “slash in government spending” in the past year? I hope you’re sitting down — Krugman’s “slash in spending” is the stimulus money that is fading away. So the solution to a tanking economy — an economy that got even tankier thanks to the stimulus — is to double-down on the original stimulus that even Reuters reporters are saying might have only made things worse?

Here’s a chart of all post WWII recessions listing at the bottom the number of months from peak employment at the start of each recession and at the left the percentage of jobs lost. Guess which line is the recession we’re in right now:

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Anybody who can look at that and say that the only way to recover is for the government to crank up spending and take more money from the private sector via tax and fee increases is a… well, a progressive economist or DC liberal.

The ultimate problem with the “big government” thinking is that after a while — and we’re seeing it with thousands of public sector layoffs around the country — the system can’t sustain itself. It’s best to have those jobs in the private sector where they can be sustained through the natural order of the free market economy. In other words, big government liberals make high unemployment inevitable by creating a public sector economy that isn’t sustainable, and everybody else gets stuck with a bill that must be paid at a later date, crippling the private sector, and nobody wins.

Margaret Thatcher put it more simply: The problem with socialism is that eventually you run out of other people’s money.

(h/t Don Surber)

Comments

11 Responses to “Paul Krugman Addresses the Lousy Jobs Report: This Calls for Immediate Government Spending!”

  1. Dexter_Alarius on July 8th, 2011 5:54 pm

    Does the Nobel committee ever revoke awards?
    There are 2 I can think of that would be candidates.

  2. Dexter_Alarius on July 8th, 2011 6:02 pm

    Can we identify on that chart which recessions were met with Federal Government intervention into the market, and which weren't?

  3. Adam on July 8th, 2011 6:27 pm

    "…and everybody else gets stuck with a bill that must be paid at a later date, crippling the private sector, and nobody wins"

    Wrong! The winners are the washington politicians…they always win. They have everything to gain and nothing to lose (except for MAYBE their jobs, but even then, they still have their sweet pensions to collect). As long as they never expect to have to follow their own policies (they never do of course), they can make whatever b.s. up that they want since they aren't paid on a performance basis.

  4. Doug on July 8th, 2011 6:36 pm

    By "nobody wins" I was referring to us serfs in flyover country, but I see your point nonetheless. So it's about time to make those Washington politicians also lose… but do voters have the guts? Too often they don't.

  5. Joe Redfield on July 8th, 2011 6:40 pm

    Paul Krugman is the Al Gore of economics.

  6. Marshall_Will on July 8th, 2011 7:30 pm

    "The ultimate problem with the “big government” thinking is that after a while — and we’re seeing it with thousands of public sector layoffs around the country — the system can’t sustain itself."

    No, it can't. I see this even in the military. When I first enlisted back in 1980, on avg. there was only (2) E-8's and maybe (1) E-9 Pay-grade on any given Base.

    Now? Hell, I think I'm the only guy on my base that ISN'T among the Top Three pay-grades! And exactly as Doug describes, there's hiring freezes -across- the board and no new blood can enter the system. No matter HOW desperate they are for a job!

    Oh, and virtually NO ONE is being granted an 'extension'. 20 and out! See ya'.

  7. Ken in Texas on July 9th, 2011 12:37 am

    This has nothing to do with the idiot Krugman, but I'd like a "Woahhh Bundy!" for the State of Texas. Today Texas gave the finger to Mexico, Obama, the UN and the Hague. We executed a savage illegal who raped a 16-year old girl with a tree branch and then killed her.if she wasn't dead already. All of the above named tried to save this bastard, but Texas did its duty. I cannot imagine living anywhere else than the GREAT STATE OF TEXAS!

    C'mon down, y'all!

  8. Fuzzlenutter on July 9th, 2011 11:43 am

    Paul Krugman is the court jester in the Obama Kingdom. All that's missing is the makeup, costume, and hat with two bells…

  9. SignPainterGuy on July 9th, 2011 3:17 pm

    "………and hat with two bells…" Krugman would need three bells !

  10. SignPainterGuy on July 9th, 2011 3:21 pm

    Does everything the left considers doing have to have a history of failure and destruction of freedom and liberties ? Oh, I guess I answered my own question. YES !!! It`s ALL ABOUT power and control and the truckloads of money that comes with it !

  11. Daily Dive 11 July 11 | adeliemanchot on July 11th, 2011 10:44 am

    [...] Paul Krugman Addresses the Lousy Jobs Report: This Calls for Immediate Government Spending! [...]

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