The View From 1776

The Daily Socialist - 6/25/10

Krugman’s prescription: spend now and screw future generations.

Dismissing the catastrophic costs of inflation, Krugman’s hero Keynes flippantly said, “In the long run, we’re all dead.”  One oddity is that he said this on the heels of Germany’s savagely destructive hyperinflation, caused by the loose money, deficit spending policies Keynes advocated, a hyperinflation that set the stage for Hitler’s accession to power.

Posted by .(JavaScript must be enabled to view this email address) on 06/25 at 10:42 PM
  1. One man's witty aphorism is another's flippancy.

    "In the long run, we are all dead," carries a wealth of meaning that we need to heed.

    As Hippocrates said, "Life is short, art long, opportunity fleeting, experience misleading, and judgment difficult."
    Posted by .(JavaScript must be enabled to view this email address)  on  06/26  at  10:27 AM
  2. jj-In what context did Keynes use that famous line? Let us know when you find out.

    What did keynes refer to when he spoke of 'green cheese'? Was he an elitist who believed it was in the public's interest to be mislead, misdirected by that 'elite'? Why did he believe in 0% interest rates and price fixing? Was he a mercantilist? What is mercantalism? What is zero sum thinking?

    Do you have any idea what keynesian economics really is? Do you understand the danger of the rationalizations it offers to statists? What insights does public choice theory offer regarding the nature of politics and unchecked government? What does regulatory capture mean? Is it not an obvious reflection of reality? Do you understand the difference between what Keynes said and what keynesian economics actually is in practice? How is Keynes not just another elitist, progressive jackass? Why would anyone toy with the liberty of the people in the name of half-assed theory? Does hubris have anything to do with it?
    Posted by .(JavaScript must be enabled to view this email address)  on  06/26  at  12:34 PM
  3. All we have to do is read the government's own reports and the President's Budget projections to see who is right. There is more doom and gloom in them than any of the people we see on the media.

    OR, listen to Bernanke's testimony and prepared presentation to Congress and we can see that the policies can't be sustained for much longer.

    We have seen this nation in decline now for decades and the standard of living in decline in infrastructure, buying power, and the amount of government spending from national income it takes to keep GDP positive.

    In the 20's it was 12% of National Income. Getting out of WW II, it was only 20%. In the 90's as we had the bubble years and illusion of growth, it was 43% and in 2009, 61% and now is close to 65% if not more as tax revenues have fallen.

    Cities and states are facing a layoff of 900,000 workers and more in the private sector will be laid off without the "keynesian spending" but, sadly, that spending won't stop us from having a depression or collapse according to our own government accountants. It will only speed up the process.

    I am a senior on Medicare and Social Security. I can guarantee that I will be hammered by what it going to happen. I don't want it but, I have to face the fact it will happen and I have to prepare as best I can for it.

    Due to health issues my wife and I have, we are stuck here in 115 degree heat. Think what that is going to be like when we start having major power outages and I lose A/C. Regarding health? Think what it will be like as doctors from the various nations that came here to be educated and stayed, start going back home.

    Hospitals won't have power and they won't have enough fuel for generators. They will be understaffed and under equipped if not closed. If they are open, there will be hour waits just to have a doctor evaluate your condition.

    Sadly, that is what we face whether they spend or not.

    If they do spend, I will use any extra time to prepare even more if my health allows it.
    Posted by JanPBurr  on  06/26  at  11:35 PM
  4. Tom,

    If I attempted to answer all your questions (which are probably only rhetorical anyway), nobody would slog through it.

    "We are all dead in the long run" is a response to those who fear that "short term" government pump priming may turn into unending deficits and uncontrolled inflation.

    Right now, our economy is staging a fragile recovery. However, the latest surge in popularity for "belt tightening" is likely to kill the recovery and send us into a real depression.

    If you want to see financial problems, then a real depression is the thing for you!
    Posted by .(JavaScript must be enabled to view this email address)  on  06/28  at  09:50 AM
  5. I think we all know that is the case but, it still isn't justified. All it does is make things worse since we can't grow or tax out of this.

    You are 100% correct that belt tightening will send us into a real depression. That is the justification they are using but, it doesn't make it right.

    This is not something you can fix. It had to be prevented decades ago. You can delay it and make it worse but, you can't avoid it.

    You have heard the testimony of Bernanke, read his reports, read the reports of the GAO and CBO so how can the spending be justified?
    Posted by JanPBurr  on  06/28  at  10:12 AM
  6. jj- Correct but incomplete. It was in response to the monetarist argument regarding inflating the money supply and it's eventual effect on prices. It was also a comment made justifying the appeasing of German National Socialism.

    The questions are not rhetorical. They should be simple to answer. What it means to be a "progressive" is found in the answers. Think: fraud, elitism, top-down control, social engineering and totalitarianism.
    Posted by .(JavaScript must be enabled to view this email address)  on  06/28  at  02:37 PM
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