Paul Krugman: There Is No Debt Crisis

Krugman, the liberal economist who has found a home at the New York Times writing columns about how everyone else is an idiot, recently responded to a question on C-SPAN’s “Washington Journal” about Paul Ryan’s statement on the debt and deficit. Ryan stated that we’re spending a trillion dollars more than we take in, and that if we continue down this path, we’ll have a debt crisis. He said that the debt crisis will be manifested when our financial system has collapsed and our economy has stalled.

He’s right except that I think we are already in the middle of a debt crisis. Our entire financial system is an unsustainable house of cards, and the debt is incapable of being paid. Our money itself is debt, is inherently worthless and even a small geopolitical “flick” of an event could be the catalyst that sends our illusory financial system toppling down. That sounds like a crisis to me.

But Krugman laughed at such assertions:

 “There’s a whole bunch of reasons why that’s not true. First of all… that trillion-dollar deficit is overwhelmingly the result of a depressed economy. And when the economy’s depressed it’s good to run a deficit. You don’t want the government to try and balance its budget right now.”

 We don’t have a debt problem, and we don’t have a deficit problem. In fact, since our economy is in depression, the government needs to run a deficit. This isn’t the time to be cutting spending. We need to increase spending. And don’t worry. We won’t run out of cash trying to “fix the economy” because the government can just print the money.

So, if the government can just print the money, then why do we have to pay taxes? Why is Krugman so in favor of raising taxes, especially on those the government arbitrarily decides are rich? Just have the government print the money.

Krugman champions this Keynesian mentality not as a philosophy, but as a “model of how the real world works.” In other words, it’s scientific, and it’s been proven to work. But how exactly is it “working?”

Unemployment rose in January to 7.9%. 169,000 people dropped out of the labor force last month. Ever since Obama took office, 8.5 million people have completely fallen out of the labor force. Obama even had to fire his “Jobs Council” a couple days ago, the economic advisory committee supposedly focused on “job creation.” Heck, if they can’t even hold a job, we must be in really bad shape.

We can thank John Maynard Keynes, the great homosexual eugenicist and economist, for this big government mentality that has infected most politicians and college professors today like an STD. Central economic planning doesn’t work, hasn’t worked and is the reason our economy is bad and getting worse. No amount of government spending, bailouts, money printing or widening of the deficit will revive this economy. And when the economy does collapse, Krugman will be there yelling that it was all the GOP’s fault.