I haven’t had much use for Paul Krugman of the New York Times but the man holds such a place of high esteem in liberal/leftist/Dem circles that you just simply can’t get away from him. Making his appearance on the Sunday talk shows, Krugman touted an alien invasion as just the ticket to get ourselves out of this economic trouble we’re in. No, I’m not kidding:
PAUL KRUGMAN, NEW YORK TIMES: Think about World War II, right? That was actually negative social product spending, and yet it brought us out.
I mean, probably because you want to put these things together, if we say, “Look, we could use some inflation.” Ken and I are both saying that, which is, of course, anathema to a lot of people in Washington but is, in fact, what fhe basic logic says.
It’s very hard to get inflation in a depressed economy. But if you had a program of government spending plus an expansionary policy by the Fed, you could get that. So, if you think about using all of these things together, you could accomplish, you know, a great deal.
If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. And then if we discovered, oops, we made a mistake, there aren’t any aliens, we’d be better –
ROGOFF: And we need Orson Welles, is what you’re saying.
KRUGMAN: No, there was a “Twilight Zone” episode like this in which scientists fake an alien threat in order to achieve world peace. Well, this time, we don’t need it, we need it in order to get some fiscal stimulus.
Noel Sheppard at NewsBusters.org fortunately applies facts and reason to this little bit of imbecility and historical illiteracy by showing that Krugman’s stance that all we need to do is so like we did in WWII and were gonna be all right. (Short answer, federal spending rose 10-fold in the years between 1940 and 1945. If we did that today, our deficit would be $30 trillion a year.)
Folks, it’s like the liberals in this country – the ones who continue to insist that Obama’s doing a bang-up job and we need another 4 years of this, anyway – don’t live in the same world as the rest of us. If your household has $15,000 in credit card debt because you’re spending more than you make, does it honestly make sense that you can correct that issue by charging more purchases to credit?!? You cannot spend your way out of debt. The only way to get out of debt is to spend less and pay that debt down with the money you make. And going to your boss’s office with a gun and demanding more cash in your paycheck isn’t the right answer either.
The fact that some of the Left’s big thinkers are making comments like those of Krugman’s and are suggesting that we need to just hand out more of the public’s cash because that’ll make our debt go down is just proof that they’re not going to do what’s needed to get us out of this problem. I was glad to see many of my fellow Americans come to their senses at the polls in 2009 and 2010. Let’s do it again in 2011, where those of us will be called upon to vote, and especially in 2012.