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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsKRUGMAN: Our Inability To Invest "Reflects Destructive Ideology That Has Taken Over Republican Party
Ideology and Investment
OCT. 26, 2014
by Paul Krugman
America used to be a country that built for the future. Sometimes the government built directly: Public projects, from the Erie Canal to the Interstate Highway System, provided the backbone for economic growth. Sometimes it provided incentives to the private sector, like land grants to spur railroad construction. Either way, there was broad support for spending that would make us richer.
But nowadays we simply wont invest, even when the need is obvious and the timing couldnt be better. And dont tell me that the problem is political dysfunction or some other weasel phrase that diffuses the blame. Our inability to invest doesnt reflect something wrong with Washington; it reflects the destructive ideology that has taken over the Republican Party.
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And its all about ideology, an overwhelming hostility to government spending of any kind. This hostility began as an attack on social programs, especially those that aid the poor, but over time it has broadened into opposition to any kind of spending, no matter how necessary and no matter what the state of the economy.
You can get a sense of this ideology at work in some of the documents produced by House Republicans under the leadership of Paul Ryan, the chairman of the Budget Committee. For example, a 2011 manifesto titled Spend Less, Owe Less, Grow the Economy called for sharp spending cuts even in the face of high unemployment, and dismissed as Keynesian the notion that decreasing government outlays for infrastructure lessens government investment. (I thought that was just arithmetic, but what do I know?) Or take a Wall Street Journal editorial from the same year titled The Great Misallocators, asserting that any money the government spends diverts resources away from the private sector, which would always make better use of those resources.
http://www.nytimes.com/2014/10/27/opinion/paul-krugman-ideology-and-investment.html?ref=opinion&_r=1
daleanime
(17,796 posts)IDemo
(16,926 posts)KittyWampus
(55,894 posts)dorkulon
(5,116 posts)vlyons
(10,252 posts)just saying ...
harun
(11,348 posts)House of Roberts
(5,171 posts)Except on the military or big oil subsidies.
Prophet 451
(9,796 posts)Keynes ideas work, austerity doesn't but teh right is so enamored of trickle-down and austerity that they use "Keynesian" as a snarl word.
They really do live in their own little world.
Enthusiast
(50,983 posts)Jim Lane
(11,175 posts)When the Bush tax cuts were expiring, the Republicans were all about "Don't raise taxes during a recession." That's actually a valid generalization, for reasons explained by Keynesian theory -- the tax increase would tend to reduce aggregate demand and thus exert deflationary pressure.
Of course, it also follows that measures like extending unemployment benefits, which increase aggregate demand, would have a stimulative effect and promote recovery. For the Republicans, however, once their corporate paymasters had most of their tax cuts preserved, it was immediately time to throw Keynes overboard and go back to the failed policies of austerity.
Their capacity for hypocrisy is boundless.
vlyons
(10,252 posts)and let infrastructure crumble and go to seed, then you can buy the damaged goods at deep deep deep discounts, privatize, and then monopolize for that sector. Vulture economics. Case in point -- the postal service. GOP is doing their best to run it into the ground.
Hekate
(90,704 posts)raouldukelives
(5,178 posts)In some cases, it is what funds many of our party. I guess it all boils down to Fiduciary Responsibility. If the people truly in charge don't want it, it won't happen. Those people are the shareholders who grant that magical ability to corporations to ignore laws if it is in the best interest of themselves. They don't care about safety nets or safe highways, clean water or healthy workers. They care about what is the very best for them, at that moment in time, for the next spreadsheet or the next financial statement. Come hell or high water, or in our case, both.
This hasn't happened quickly. Over decades, with every dollar, true democracy, honesty, reality, has been ignored in small increments until one day the reality comes knocking and we finally realize it has become a tidal shitstorm of epic proportions. I think that is about where we are today.
Populist_Prole
(5,364 posts)Astute, and I see evidence of the corporate mindset every day. It affects actions and policy at every level and yet so many accept it with a "well I guess that's just the way it is and that's that" shrug.
pampango
(24,692 posts)and are reaping the 'benefits' (from their perspective) of that strategy. They have created a more receptive audience for their conservative philosophy, though most of us would say that they have achieved this through the use of fear and emotion rather than really selling their political ideas.
One question: Can Democrats turn that around in the short run (obviously much more satisfying and good for the people of the country) or should we expect change in a liberal direction to take just as long? While they are not mutually exclusive, given the state of the country, it is hard to concentrate on long-term strategies.
raouldukelives
(5,178 posts)So many of them eat from the same trough. The few that seem to be aware soon become marginalized and cast off by the serious thinkers after they make the mistake of having those viewpoints known.
So, no. I really don't think the party can turn it around. Unless of course they actually start listening to the people and not the people lobbying them. It seems in poll after poll people of America want what the base of the Democrat party wants. The only reason it becomes unfeasible is because of the weight of all that corporate money pulling our politicians in the opposite direction. Or as you said, using fear and emotion. Corporate cash paying for those views to be hollered from all the media outlets. While the same cash pays for events like the Climate March to be ignored or in the case of Occupy, outright attacked.
I think any change has to begin at the grassroots. Those people who truly want to build a better world need to start backing the people who do. Instead of backing the ones who want it to remain the same. It is great to vote for change, but like slavery, it isn't something that can be changed by voting alone. Not when that much money is involved. It requires good people refusing to profit off the suffering of others. That is what truly ended slavery in my mind. A groundswell of people who had had enough of it and were disgusted by the idea of themselves and others profiting from it. We need those kinds of liberals again. Ones who see grave injustices like climate change levying massive amounts of suffering onto others and refuse to be an idle cog in the face of it. And we need a lot of them, fast. We don't have decades to turn it around.
for Professor Krugman.
Fred Sanders
(23,946 posts)The false fear they generated in these past weeks is going to haunt them forever and hopefully haunt the fear mongering GOP in a week.
I think most folks, when they realize it, do not like being put falsely in fear.
Cary
(11,746 posts)What is it, exactly, that Republicans have done to earn anyone's trust?
Have Republicans not made a mess of anything?
Enthusiast
(50,983 posts)Thank you, kpete.
kelliekat44
(7,759 posts)randr
(12,412 posts)and Republicans are tired of seeing the credit go to the opposition.
They should be more concerned that the problems we are facing are their fault and they have never owned up to them.
JEFF9K
(1,935 posts)Krugman hits the nail on the head when he says not to diffuse the blame by using a term like political dysfunction.
This is on the Republicans!
Spitfire of ATJ
(32,723 posts)It seems like basic common sense, doesn't it?
Hell, infrastructure spending is even good for corporations. Yet they fight it. It seems like the Republican Party has been taken over by blind self-destructive ideology. Unfortunately, their self-destructive behavior is dragging the rest of us along with them.
Spitfire of ATJ
(32,723 posts)Then they sell government contracts to campaign contributors.
pansypoo53219
(20,977 posts)ayn rand. god forbid anybody needs to pay taxes.
libodem
(19,288 posts)They could invest but won't because they cant stand the idea of Obama having any success or getting the credit for a job well done.
Plain and simple Republicans are mean people. Selfish mean people.