Friday, February 05, 2010

Krugman Vs Krugman

Op-Ed Columnist - Fiscal Scare Tactics -

Here is Krugman in 2005
And so it has turned out. President Bush has presided over the transformation of a budget surplus into a large deficit, which threatens the government's long-run solvency. The principal cause of that reversal was Mr. Bush's unprecedented decision to cut taxes, especially on the wealthiest Americans, while taking the nation into an expensive war.

Here is Krugman today:

Yet they aren’t facts. Many economists take a much calmer view of budget deficits than anything you’ll see on TV. Nor do investors seem unduly concerned: U.S. government bonds continue to find ready buyers, even at historically low interest rates. The long-run budget outlook is problematic, but short-term deficits aren’t — and even the long-term outlook is much less frightening than the public is being led to believe.

See, not to worry. Deficits in the low 100's of billions in a growing economy under a Republican president "threaten long-run solvency". Deficits in the trillions in a stagnant to falling economy under a Democrat are really no big deal at all. Simple.

No need to ask multiple economists to get multiple opinions with Krugman around, just switch parties and the whole world is different!

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