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Paul Krugman And Ron Paul Agree: Debt Ceiling Deal Sucks

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Dokkie Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 01:44 AM
Original message
Paul Krugman And Ron Paul Agree: Debt Ceiling Deal Sucks
The truth, according to Rep. Ron Paul (R, Texas), is that there are actually no cuts at all in the new plan. “The ‘cuts’ being discussed are illusory, and are not cuts from current amounts being spent, but cuts in projected spending increases,” wrote Ron Paul. With only 2% of cuts taking place before the next presidential election, according to Zerohedge, the truth is that Washington is about to pass “a bigger budget than ever” despite heavy rhetoric, said Ron Paul, who put it like this:

is akin to a family “saving” $100,000 in expenses by deciding not to buy a Lamborghini, and instead getting a fully loaded Mercedes, when really their budget dictates that they need to stick with their perfectly serviceable Honda.
---snip---

On the flip side is liberal economist Paul Krugman, who in his New York Times opinion column called the deal “a disaster.” Krugman notes that the economics of the plan are completely flawed given that cutting spending in a weak economy will lead to further weakness. Indeed, it will actually worsen the budget situation, making the economy weaker and reducing revenues.

“Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record,” Krugman writes. The economist notes that given historically low interest rates, “spending cuts now will do little to reduce future interest costs.”


http://blogs.forbes.com/afontevecchia/2011/08/01/paul-krugman-and-ron-paul-agree-debt-ceiling-deal-sucks/
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chill_wind Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 01:51 AM
Response to Original message
1. Who *doesn't* think it sucks?
Disgusting, Stupid and Frustrating: Everyone Hates The Debt Debate
http://tpmdc.talkingpointsmemo.com/2011/08/disgusting-stupid-and-frustrating-everyone-hates-the-debt-debate.php

And that was before the deal. And before today!
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Skittles Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 02:13 AM
Response to Reply #1
2. Obama's fanbase thinks it is just hunky dory
:(
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chill_wind Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 03:17 AM
Response to Reply #2
7. All cuts and no revenue,
Edited on Sat Aug-06-11 03:18 AM by chill_wind
and an effed up Super Congress shark-fest for lobbyists and "entitlement reformers"-- that's IF any of it gets done-- and an extreme precedent-setting likelihood, now, that we'll get to do all this negotiating with terrorists AGAIN when the time comes-- plus a downgrade by the fraudulent ratings agencies that we never bothered going after-- and after all, Boehner only got 98% of what he wanted, so we did screw him out of something. What's not to love?
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pscot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 12:06 PM
Response to Reply #2
11. I don't think even they believe that
Despite the reflexive defenses they throw up.
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GOPBasher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 02:17 AM
Response to Original message
3. Paul hates it b/c it doesn't cut enough; Krugman hates it b/c it cuts too much. That's actually
an argument in favor of the bill. I'm not saying I like the bill (or not, I have looked too much into it yet), but still, the fact that both the hard left and hard right hate it may speak volumes of it as a good compromise.
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chill_wind Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 02:23 AM
Response to Reply #3
4. Grover Norquist gave it his blessing. That's about all I need to know. n/t
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Dokkie Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 02:26 AM
Response to Reply #4
5. do you have a link saying that?`
The extremes on both sides seem to hate the bill and I would seriously be in shock if Norquist supported it. Link please if you have one
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chill_wind Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 02:28 AM
Response to Reply #5
6. Coming right up.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1630260#top
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Fuddnik Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 04:51 PM
Response to Reply #6
14. But that doesn't count because he didn't consult with Hanoi Jane Hamsher!
:sarcasm:
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Bluenorthwest Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 10:26 AM
Response to Reply #5
10. Oh, he supports it, because those who like it are just like Grover
nt
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pscot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 12:11 PM
Response to Reply #3
12. Everyone hates it so it must be OK?
You must be channeling th President.
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midnight Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 07:28 AM
Response to Original message
8. K&R Passing biggest budget ever.... I guess we have to find a way to pay for the every increasing
wars that keeping getting added... Washington can't find money for universal health care, because they don't care... It's not an affordability issue... It's a class issue... Washington thinks the American people don't deserve to be healthy and access the best health care in the world. Washington thinks the American people should pick up the tab always... for them and all their debts.. Yep this is a disastrous way to think....
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Doctor_J Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 09:17 AM
Response to Reply #8
9. Passing the biggest budget ever with no new revenues
it just keeps getting worse.
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blkmusclmachine Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Aug-06-11 01:57 PM
Response to Original message
13. I believe the Budget "Deal" was crafted TO FAIL, & further weaken the Economy:
Which the "solution" to the new fail will be...more Cuts/fewer taxes. It's a downward spiral, and I believe planned that way.
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