Thursday, March 11, 2010
Krugman Does It Again
Well, maybe I'm somehow misinterpreting his point in his blog post today, titled 51 Herbert Hoovers, in which he is complaining that cutbacks in spending at state levels offsets an increase at the federal level, implying that states should not be cutting back. He sort of misses the point that, unlike the federal government, states cannot print money, and most of them cannot borrow it either. How are they supposed to not cut back? California tried paying with IOU's at one point and they were, to say the least, not at all well received.
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Ok, I read it (51 and 50 hoovers) ... he does have a point about the problems in the cutbacks and how they are affecting society. What he misses is the source of the money that they have to spend - and the fact they have less of it and looking grim as to more of it. It's great that he wants the state to put the unemployed to work on projects, but is the state going to pay them with what? IOU's? Um, no.
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