Krugman: 'Things Could Be Worse'

[Newsjock]

Source: New York Times

“Japan’s problems now are the same as they were in the 1990s, when you were writing about them. It’s depressing.” So declared one economist I spoke to here. “But the Japanese don’t seem all that depressed,” objected another. Both were right — and the conversation crystallized some thoughts I’ve been having about Japan’s situation, and ours.

A decade ago, Japan was a byword for failed economic policies: years after its real estate bubble burst, it was still suffering from chronic deflation and slow growth. Then America had its own bubble, bust and crisis. And these days, Japan’s record doesn’t look that bad to an American eye.

... Even with such measures, we’ll be lucky to do as well as Japan did at limiting the human and economic cost of the economy’s financial woes. But it’s by no means certain that we’ll do even that much. If the Republicans go beyond obstruction to actually setting policy — which they might if they win big in November — we’ll be on our way to economic performance that makes Japan look like the promised land.

It’s hard to overstate how destructive the economic ideas offered earlier this week by John Boehner, the House minority leader, would be if put into practice. Basically, he proposes two things: large tax cuts for the wealthy that would increase the budget deficit while doing little to support the economy, and sharp spending cuts that would depress the economy while doing little to improve budget prospects. Fewer jobs and bigger deficits — the perfect combination.

Read more: http://www.nytimes.com/2010/09/10/opinion/10krugman.html?_r=1&ref=opinion

[BlueCheese]

1. Things look bleak.

The GOP has become a cartoon. It seems that over the years their once-plausible platform has become more and more absolutist and simplistic. Is there even a hint of nuance or complexity in their minds now? Any sliver of doubt given that their policies wrecked the economy and gave us our current disaster?

[Lasher]

2. Nuance?

Republicans think that's what you get when your uncles get married.

[BlueCheese]

3. That pun is definitely in the "so bad it's good" category...

[Lasher]

4. You're right, pretty lame.

It's the best I've got right now. :-(

[Demeter]

5. Wait a Week, and Things WILL Be Worse

and as far as the Japanese mood goes--have you seen the latest suicide/mental illness numbers?

Just because Japan's Big Business community isn't up in arms doesn't mean it's all rainbows and puppy dogs and ponies over there.

[Lucky Luciano]

6. Their unemployment at it's worst was about 6% and their middle class is strong. nt

[Demeter]

8. And You Trust Japanese Government Numbers?

We must not be reading the same news accounts.

[Lucky Luciano]

9. Guess not. My girlfriend is from a middle class Japanese family.

Life is not as fun as it was during the bubble, but poverty is not at all endemic there.

[deacon]

7. In other words we go right back to bush. The GOP is hell bent on taking us

down and they will with a guy like boehner.

[Toots]

10. And Boner may be the least crazy among the entire Republican Party.

Is America truly this insane?

[ThomWV]

11. He is so correct - if the Republicans take power it will doom our economy