Paul Krugman is a menace to society. This man, for those who may not know, writes Op-Ed columns for the New York Times. I know what you’re saying already….it’s the New York Times, what do you expect? I always expect too much I guess.
In his column today titled Senator Bunning’s Universe, Mr Krugman writes:
What I want to focus on right now, however, is the incredible gap that has opened up between the parties. Today, Democrats and Republicans live in different universes, both intellectually and morally.
hmmm…Mr Krugman is a big, scratch that, huge lib. That being the case I would assume that he is also a big pro-abort guy…and he is about to discuss morality?
Take the question of helping the unemployed in the middle of a deep slump. What Democrats believe is what textbook economics says: that when the economy is deeply depressed, extending unemployment benefits not only helps those in need, it also reduces unemployment. That’s because the economy’s problem right now is lack of sufficient demand, and cash-strapped unemployed workers are likely to spend their benefits. In fact, the Congressional Budget Office says that aid to the unemployed is one of the most effective forms of economic stimulus, as measured by jobs created per dollar of outlay.
Mr Krugman apparently has not seen the reams of data proving that when you subsidize an activity, you get more of it. This rule hold true for unemployment as well. When unemployment benefits are extended, you get more unemployment for a longer period of time. According to the Wall Street Journal:
Studies in the Monthly Labor Review have shown that those who have supposedly been “unable to find a job” in 26 weeks miraculously find one within a few weeks after their benefits run out. They either quit waiting to be rehired in cyclical industries, or accepted second-best jobs that required, for example, moving to a new city.
The truth is a refreshing thing….and, more often than not, it makes sense.
He then attempts to justify his statement by quoting the “non partisian” CBO. Would that be the same CBO that, when Medicaid was introduced, said it would cost THRITY SEVEN times less than it actually costs today? All politicians on both sides of the isle should stop quoting this bunch. They are simply wrong far too often to be trusted.
He then states that this same CBO says that “unemployment aid is one of the MOST effective forms of economic stimulus, as measured by jobs created per dollar of outlay.” If that’s is indeed a true statement, higher unemployment would mean more jobs created….does your head hurt too?
But that’s not how Republicans see it. Here’s what Senator Jon Kyl of Arizona, the second-ranking Republican in the Senate, had to say when defending Mr. Bunning’s position (although not joining his blockade): unemployment relief “doesn’t create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.”
In Mr. Kyl’s view, then, what we really need to worry about right now — with more than five unemployed workers for every job opening, and long-term unemployment at its highest level since the Great Depression — is whether we’re reducing the incentive of the unemployed to find jobs. To me, that’s a bizarre point of view — but then, I don’t live in Mr. Kyl’s universe.
What Mr Krugman knows, of course, is that Mr Kyl would like to see policies from this Administration and Congress that would provide a clear road ahead for businesses. Some stability. Jobs will not return in a big way until businesses know the rules in regard to ObamaCare, Cap and Tax, EPA regulations, tax increases, etc. These factors are in flux…businesses hate flux. They want stability so they can forecast their fixed costs. The current environment is simply hostile toward private business. All the unemployment extensions in the world aren’t gong to change that fact.
Continuing to dissect the entire piece would be more of the same. I think you get the point. Mr Krugman is either being disingenuous or is just plain uninformed. The fact that any organization gives him space, ink and a paycheck speaks volumes to how far the press has fallen in this country.
Anyone have any Advil?