Monday, December 31, 2012

Brewing Up Confusion Krugman Dec. 31, 2012

Mr. Krugman, you are officially part of the problem not the solution.  When you say "the president has already cut spending sharply" that is pure fabrication. And when President Obama said on "Meet the Press" that he "cut spending by over a trillion dollars in 2011", that too is pure fabrication.

In fiscal 2010 total federal spending was $3,456,213,000,000.  In fiscal 2011 total federal spending was $3,603,213,000,000.  So, that's $147B MORE.  Mr. Obama is referring to reductions in increases from a budgetary baseline but reductions in increases are not cuts. 

Now as Nobel Laureate Krugman often notes the crucial metric is growth of debt as a ratio to GDP.  Ratios of less than 90% don't appear to have significant impact on growth but once past that threshold "are associated with 1% lower media growth."

Your attack on "Fix the Debt" is unhelpful and illustrates why you are part of the problem.  I guess you include them in the "Prophecy of Doom" cult.  But they are more inclusive of all options required to solve the problem whereas you and your cult are rather one-sided and exclusive in your position.  By this analysis the Krugman Cult is, well, a cult.

But there's one thing on which we can agree.  The Republican call for cuts in entitlement spending goes against the wishes of their constituents.  Polls show unequivocally that cuts to Social Security and Medicare are not popular.  A majority, even of those sympathetic to the Tea Party, are supportive of Social Security and Medicare.  Once these constituents realize the impact the Republican positions will have on them, the Republican Party will disintegrate.

So have no fear Mr. Krugman, you and your ilk will surely win the day.  And eventually we'll all be worse off.

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