View Full Version : Ireland is Romney Economics in practice

06-24-2012, 10:35 PM
Paul Krugman, winner of Nobel Memorial Prize in Economic Sciences, professor at Princeton, and op-ed columnist of the New York Times, says that Ireland is Romney Economics in practice. Lowest corporate tax rates, laid-off large percentage of public work force, extreme austerity programs, slashed spending, haven't raised taxes on rich or corporations, zero economic growth, 14% unemployment, 30% unemployment for the youth,; "Ireland is America's future if Romney is President".


06-24-2012, 10:43 PM
Oh man, now you asked for it. Here comes the shrapnel...

06-25-2012, 08:19 AM
I love how all these Keynesians are attacking each other. Krugman is an idiot that no one should listen too. He should like Romney. They both believe in the same BS. Big government interventions and spending.

06-25-2012, 09:00 AM

06-25-2012, 09:07 AM
Iíve always favored the let-bygones-be-bygones view over the crime-and-punishment view. That is, Iíve always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate alternative investments. But I had to face the fact that speculative bubbles usually are followed by recessions. My excuse has been that this was because the policy makers moved too slowly ó that central banks were typically too slow to cut interest rates in the face of a burst bubble, giving the downturn time to build up a lot of momentum. That was why I, like many others, was frustrated at the smallish cut at the last Federal Open Market Committee meeting: I was pretty sure that Alan Greenspan had the tools to prevent a disastrous recession, but worried that he might be getting behind the curve.

However, letís give credit where credit is due: Mr. Greenspan has cut rates since then. And while some of us may have been urging him to move even faster, the Fedís four interest-rate cuts since the slowdown became apparent represent an unusually aggressive response by historical standards. Itís still not clear that Mr. Greenspan has caught up with the curve ó letís have at least one more rate cut, please ó but the interest-rate cuts do, cross your fingers, seem to be having an effect.

If we succeed in avoiding recession, this will mark a big win for let- bygones-be-bygones, and a big loss for crime-and-punishment. And that will be very good news not just for this business cycle, but for business cycles to come.

July 18, 2001

ďConsumers, who already have low savings and high debt, probably canít contribute much. But housing, which is highly sensitive to interest rates, could help lead a recoveryÖ. But there has been a peculiar disconnect between Fed policy and the financial variables that affect housing and trade. Housing demand depends on long-term rather than short-term interest rates ó and though the Fed has cut short rates from 6.5 to 3.75 percent since the beginning of the year, the 10-year rate is slightly higher than it was on Jan. 1Ö. Sooner or later, of course, investors will realize that 2001 isnít 1998. When they do, mortgage rates and the dollar will come way down, and the conditions for a recovery led by housing and exports will be in place.

October 7, 2001

ďPost-terror nerves aside, what mainly ails the U.S. economy is too much of a good thing. During the bubble years businesses overspent on capital equipment; the resulting overhang of excess capacity is a drag on investment, and hence a drag on the economy as a whole.
In time this overhang will be worked off. Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer. But it seems inevitable that there will also be a fiscal stimulus packageĒ

Dec 28, 2001

ďThe good news about the U.S. economy is that it fell into recession, but it didnít fall off a cliff. Most of the credit probably goes to the dogged optimism of American consumers, but the Fedís dramatic interest rate cuts helped keep housing strong even as business investment plunged.Ē


06-25-2012, 10:21 AM
paul krugman= guilty white male

06-25-2012, 10:48 AM
I like how Krugman ignores why Ireland's economy collapsed in the first place. But attacks the after-effects.

06-25-2012, 05:54 PM
I like how Krugman ignores why Ireland's economy collapsed in the first place. But attacks the after-effects.

Yes, Krugman's a politcal hack whose nobel prize sitting on the mantle means as much now as Obama's Peace Prize.