Daily Archives: May 6, 2011

Paul Krugman almost gets it right…almost….

Good lord in heaven. Paul Krugman is almost right about something…it’s a damn good thing I don’t believe in the Book of Revelation or I just might count this as a sign of the apocalypse.

Let me explain in his latest article “Falling Dollar Phobia” he points out that just because the dollar is falling isn’t necessarily bad because it can lead to more exports being bought which in turn will raise the economy. On this he is right. Although he states it as a fact and the truth is that it’s only a possibility. The problem with this is that the economy is never dependant on one single variable. Just because the dollar weakens doesn’t mean that we will export more. If for instance the rest of the world is also doing poorly, which it is, then exports might not go up.

Krugman doesn’t seem to realize that the falling dollar itself isn’t a problem, it’s a symptom of a much bigger issue. Issues like bad business policy, bad tax policy, bad spending policy, bad foreign policy, bad credit rating, and the very big possibility of more economic bubbles to come shortly. But why should Paul deal with that when he can actually sound sorta kinda like he knows what’s he’s talking about.

Then of course there is his flip statement about why should we be worried about the dollar when we have unemployment to worry about. Technically a good point. Bad point when raised by someone whose theory of how to fix the economy is to have the government throw more money at it. Has Krugman ever proposed measures that would actually lower medical insurance costs for employers? Nope, he wants ObamaCare which will bankrupt everyone. How about simplifying the tax code? No. How about less useless red tape? How about less BS environmental regulation that does nothing to help the environment? Weakening unions? Support charter schools so the American populace will be better educated? Lower welfare payments? Nope, no and uh-uh. Paul, it’s great you can see we have an unemployment problem…now all you have to do is admit that you and your cronies are part of that problem.

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Filed under Capitalism, Debt, Economics, Paul Krugman is an idiot