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Friday, March 04, 2005

A Dismal Scientist Speaks Out

The dismal scientist is Paul Krugman, who, besides being a New York Times columnist, is a respected economist that has written over twenty books on the subject and taught at some of the top universities in the country, including Yale, MIT and Stanford. Because Paul Krugman is such a genius at it, I'll let this speak for itself.

The crux of what he is saying is that the once much respected Alan Greenspan spent his political capital by pandering to the current administration. He keeps spinning their line, first about how tax cuts were a desireable thing for the economy and now how Social Security benefits must be sharply reduced to save that same economy from bankruptcy.

I've read some of what Greenspan has said lately in both the Washington Post and the New York Times. After reading each article, I came away with the same reaction. If our economy is in as much trouble because of the deficit, as he claims, why not end the tax breaks, or - heck I know this is the real third rail of Republican orthodoxy - why not even raise taxes?

It seems that before you start cutting benefits from poor or middle class people, you ought to squeeze a little out of the super rich. Oh but that would be - dare I say it - class warfare. And that would be wrong boys and girls.

Anyway, I'm not an economist with credentials up the wazoo like Krugman is, so I was willing to admit that maybe I had missed something in this discussion. But after reading Krugman, who has quite a bio as an economist, I'm happy to say he has the same questions for Greenspan that I do. And, like me, he thinks this is Greenspan's game of three card monte.


unlawflcombatnt said...

I agree with your thoughts about Paul Krugman. I've partially read 3 of his books and I never miss his NYT columns. I also find his Greenspan criticisms interesting, as well as on target.

Social Security "privatization" should be called "corporatization," or even better, "bankruptization." As Krugman might say, privatization is a solution in search of a problem. It solves nothing. By itself, it will WORSEN social security solvency, not improve it. Solvency isn't improved by removing money from the system, it's worsened.

I completely agree with you about taxes. We could greatly reduce many of our fiscal problems by rolling back the tax cuts on the top 2%.

Keep reading Krugman. He's the best source of honest Economic assessment.


AnonymousIsAWoman said...

Thank you for your comments. I went over to your website and discovered just how knowledgeable you are on the subject of economics. Your site should definitely be recommended reading to anybody who wants to understand why our economic policies are failing.

To me, that should include anybody planning to vote ever. It's easy to be misled by politicians and their spin doctors. And before somebody votes, they ought to really educate themselves on economics and foreign policy, which are the basics. If you don't understand the economy and the world situation, how can you make an informed decision?

Anyway, your comments encouraged me to continue blogging away.