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Why does Krugman only worry about the deficit when it's caused by taxes?

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  • #46
    The answer is simple, It's Nader time.

    "Just puttin on the foil" - Jeff Hanson

    “In a democracy, I realize you don’t need to talk to the top leader to know how the country feels. When I go to a dictatorship, I only have to talk to one person and that’s the dictator, because he speaks for all the people.” - Jimmy Carter

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    • #47
      Why does Krugman only worry about the deficit when it's caused by taxes?
      Krugman is not worried about the deficit. He is worried about the debt, and the probability of a medium term fiscal crisis.

      His argument is: extending the tax cuts will increase the debt in the medium term and therefore increase the chance of a fiscal crisis.

      But spending that increases demand does not increase the debt, because demand is currently low and therefore a drag on the economy. Which is where taxes come from.

      As Krugman elegantly puts it "Keynes roolz."
      VANGUARD

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      • #48
        But spending that increases demand does not increase the debt




        You're a goddamned moron.

        12-17-10 Mohamed Bouazizi NEVER FORGET
        Stadtluft Macht Frei
        Killing it is the new killing it
        Ultima Ratio Regum

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        • #49
          Now that Vanguard is above 500 posts, he's no longer protected.
          John Brown did nothing wrong.

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          • #50
            So I'm protected from something for some reason?

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            • #51
              Originally posted by Vanguard View Post
              But spending that increases demand does not increase the debt, because demand is currently low and therefore a drag on the economy. Which is where taxes come from.
              You're sounding a bit like Reagan. Spending increases the deficit. Keynes never said anything in contrast to that.
              I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
              - Justice Brett Kavanaugh

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              • #52
                If I have misinterpreted Mr. Krugman's position, I would be very glad for you to point out where I have done so.
                VANGUARD

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