Saturday, May 12, 2012

Krugman makes excuses

Krugman answers critics of his who say that Europe has not implemented any austerity programs.

Austerity, Safety Nets, and Spending

Not only does he claim that it matters, in Keynesian theory, contrary to what everyone seems to know about Keynes, that it matters what government spends money on, but that the specific things Ireland spends it on are not stimulating enough, so Ireland has actually implemented austerity.

This is again more of the same argument that Ireland, and other European nations, have instituted austerity because they have not stimulated the economy as much as Krugman would like.

I would say that it is those who actually recommend austerity that should be defining what austerity is, and even with his charts, graphs and data, Ireland has NOT implemented austerity.

Austerity would mean reducing those "social safety nets" so people stop using them as hammocks, get off their butts, and get one of the jobs that are actually available, even if at lower pay or some job they don't like as much as their old one. People have to get working again.

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