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Paul Krugman | Detroit, the New Greece

  • (Don't) let the discussion get hijacked, Greek-style. There are influential people out there who would like you to believe that Detroit’s demise is fundamentally a tale of fiscal irresponsibility and/or greedy public employees. It isn’t. For the most part, it’s just one of those things that happens now and then when traditional sources of competitive advantage go away.
  • Obama should have listened to Paul Krugman

Paul Krugman, New York (NY) Times

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New York Times columnist Paul Krugman. (photo: AP)

When Detroit declared bankruptcy, or at least tried to — the legal situation has gotten complicated — I know that I wasn’t the only economist to have a sinking feeling about the likely impact on our policy discourse. Was it going to be Greece all over again?

Clearly, some people would like to see that happen. So let’s get this conversation headed in the right direction, before it’s too late.

O.K., what am I talking about? As you may recall, a few years ago Greece plunged into fiscal crisis. This was a bad thing but should have had limited effects on the rest of the world; the Greek economy is, after all, quite small (actually, about one and a half times as big as the economy of metropolitan Detroit). Unfortunately, many politicians and policy makers used the Greek crisis to hijack the debate, changing the subject from job creation to fiscal rectitude.

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Related:

Obama should have listened to Paul KrugmanWalden Bello, Salon

 

 

Elizabeth Warren Reduces CNBC "Squawk Box" Team to Rubble

Upper West, Daily Kos

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July 16, 2013 | It's been quite a day for Elizabeth Warren.  First, her CFPB finally gets its director, after Reid plus 50 finally show some cojones. Then she appears on CNBC's The Squawk Box and responds to the hostile and ill-informed questioning of that crew, and as Charles Pierce put it:

The next thing they knew, they were sprawled on the canvas, and somebody was waving ammonia capsules under their noses, and Mills Lane was standing above them, waving his arms.

Full story (w/video)…

Related:

Obama should have listened to Paul Krugman, Walden Bello, Salon

 

 

Section(s): 

Bring New Economy to Your Community

  • The economy becomes OUR economy when people have a say over economic issues and when the economy works for all of us rather than funneling wealth to the top 1%.
  • Defining Prosperity Down
  • Storm Clouds?

It's Our Economy

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July 10, 2013 | Another jobs report is in and it shows continued waddling along in job creation, just enough to keep the unemployment figure stable. The reality is the collapse has cost the nation 3 million jobs and that number is not shrinking. The “Lost Out-Put Clock” shows the nation has lost $4,602,667,601,6089 in national income and counting since the 2008 collapse.

To make matters worse we are now entering a new reality of poor jobs, part-time and temporary, and low-paying without benefits like health insurance. Big business makes big profits off these workers but treats them like they are disposable people.  Workers with health care will not see benefits from Obamacare, indeed things will likely get worse. This comes after years of stagnant wages, and at a time when CEO pay continues its rapid increase. The wealth divide is worsening as the ‘haves’ and ‘have-not’s’ become more extreme.

 

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Defining Prosperity DownPaul Krugman, New York (NY) Times

  • There’s remarkably little political pressure to end our continuing, if low-grade, depression.
  • Someday, I suppose, something will turn up that finally gets us back to full employment. But I can’t help recalling that the last time we were in this kind of situation, the thing that eventually turned up was World War II.
  • Obama should have listened to Paul Krugman
  • Storm Clouds?

 

Storm Clouds? Zoltan Zigedy, ZZ's Blogspot

The Fed's policy of quantitative easing is losing its healing powers.

 

Defining Prosperity Down

  • There’s remarkably little political pressure to end our continuing, if low-grade, depression.
  • Someday, I suppose, something will turn up that finally gets us back to full employment. But I can’t help recalling that the last time we were in this kind of situation, the thing that eventually turned up was World War II.
  • Obama should have listened to Paul Krugman
  • Storm Clouds?

Paul Krugman, New York (NY) Times

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July 7, 2013 | Friday’s employment report wasn’t bad. But given how depressed our economy remains, we really should be adding more than 300,000 jobs a month, not fewer than 200,000. As the Economic Policy Institute points out, we would need more than five years of job growth at this rate to get back to the level of unemployment that prevailed before the Great Recession. Full recovery still looks a very long way off. And I’m beginning to worry that it may never happen.

Ask yourself the hard question: What, exactly, will bring us back to full employment?

Full story…

Related:

Obama should have listened to Paul Krugman, Walden Bello, Salon

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Storm Clouds? Zoltan Zigedy, ZZ's Blogspot

The Fed's policy of quantitative easing is losing its healing powers.

 

 

Section(s): 

Storm Clouds?

The Fed's policy of quantitative easing is losing its healing powers.

 

Zoltan Zigedy, ZZ's Blogspot

 

Submitted by Evergreene Digest Contributing Editor Gary Kohls

 

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Sunday, July 7, 2013 | As the panic over the destiny of the Federal Reserve's “quantitative easing” program reaches hysterical proportions, uncommonly bizarre economic anomalies are surfacing. In the last week of June, the news that first quarter US Gross Domestic Product growth report was reduced dramatically from 2.4% to 1.8% was met by an equally dramatic, but paradoxical positive jump in equity markets. Normally, a rather staggering drop in GDP estimates would trigger stock market losses-- investor confidence would be battered. But the opposite occurred. 

 

What's going on?

 

Pundits and investors hailed the bad news because they hope that it will keep the Federal Reserve committed to the $85 billion per month bond purchasing project dubbed “quantitative easing.” They believe that the Fed would not dare to relax the program in the face of poor economic performance. And they recognize that without the Fed’s foot firmly pressing the accelerator, the capitalist economy will stagnate or slow. The Federal Reserve program is truly a life-support system for our economy, and capitalism's apologists recognize that they are in deep trouble without it. Therefore, investors welcomed the fall in GDP growth!

 

Full story…

Special Project | America's Financial Crisis: Week of July 7, 2013

  • “…it seems that our remedies are instinctively those which aggravate the sickness: the remedies are expressions of the sickness itself“. --Thomas Merton
  • 12  New Items including:
    • Obama should have listened to Paul Krugman
    • The Trans-Pacific Partnership is an Assault on Democracy That Will Undermine the Economy
    • The Capitalist's Case For A $15 Minimum Wage
    • Austerity is Dead
    • Paul Krugman | Debunked Reinhart-Rogoff Paper 'Did A Lot Of Damage'
    • 5 Ways That Raw, Unregulated Capitalism Is Acting Like a Cancer on American Society
    • The Gospel of Consumption
    • Paul Krugman’s right: Austerity kills
    • How America Became a Third World Country (2013-2023)
    • The Real Cost of Austerity
    • Bail-out is out, bail-in is in: time for some publicly-owned banks
    • Austerity debunked

David Culver, Ed., Evergreene Digest

Joep Bertrams

Obama should have listened to Paul Krugman, Walden Bello, Salon

The Trans-Pacific Partnership is an Assault on Democracy That Will Undermine the Economy, Kevin Zeese, Popular Resistance

Ron Kirk former US Trade Representative: making the text public would raise such opposition that it could make the deal impossible to sign.

The Capitalist's Case For A $15 Minimum Wage, Nick Hanauer, Bloomberg View

  • The current $7.25 minimum wage forces taxpayers to subsidize Wal-Mart Stores Inc. (WMT) and other large employers, effectively socializing their labor costs. This is great for Wal-Mart and its shareholders, but terrible for America. It is both unjust and inefficient.
  • One Walmart Store's Low Wages Could Cost Taxpayers $900,000 Per Year
  • Costco CEO: Raise The Minimum Wage To More Than $10 Per Hour

Austerity is Dead, Progress Report, ThinkProgress

  • It’s Time to Focus on Jobs & Growth
  • Paul Krugman | Debunked Reinhart-Rogoff Paper 'Did A Lot Of Damage' 

Paul Krugman | Debunked Reinhart-Rogoff Paper 'Did A Lot Of Damage' Huffington Post

  • “That paper of theirs did a lot of damage by giving people who didn’t want stimulus, who didn’t want any kind of expansionary policy, a way to scare their opponents.”
  • Paul Krugman’s right: Austerity kills
  • Austerity debunked

5 Ways That Raw, Unregulated Capitalism Is Acting Like a Cancer on American Society, Paul BuchheitAlterNet 

  • The predators on our society will scream about threats to "freedom" as soon as we start going after them, but it's just about trying to protect profits.
  • Attacking the Hungry
  • Suffocating the Students
  • Weakening the Children
  • Depleting the Taxpayers
  • Paralyzing the Voters

 

Christopher Weyant

The Gospel of Consumption, Jeffrey Kaplan, Orion magazine

And the better future we left behind

Paul Krugman’s right: Austerity kills, David Stuckler and Sanjay Basu, Salon

  • Austerity kills -- radical cuts destroy economies and lives, and the honest numbers and economics keep proving it.
  • Excerpted from "The Body Economic: Why Austerity Kills"
  • How America Became a Third World Country (2013-2023)
  • The Real Cost of Austerity

How America Became a Third World Country (2013-2023), Mattea Kramer and Jo Comerford‚ TomDispatch

  • Too few Americans -- with too little influence -- spoke up, and Washington didn’t listen. The rest of the story, as you well know, is history.
  • What a grim scene you have: a country investing in war in distant lands as it crumbles here at home.

The Real Cost of Austerity, Truthdig

  • It’s high time our elected officials started listening to the wisdom of economists like Nobel Prize winner Paul Krugman, who for months has been consistently warning us about the dangers of austerity. And once again, he’s been proved right.
  • Everything We Know About What’s Happened Under Sequestration

Bail-out is out, bail-in is in: time for some publicly-owned banks, Ellen Brown, Web of Debt / Nation of Change 

  • “[W]ith Cyprus . . . the game itself changed. By raiding the depositors’ accounts, a major central bank has gone where they would not previously have dared. The Rubicon has been crossed.”   —Eric Sprott, Shree Kargutkar, “Caveat Depositor
  • Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

Austerity debunked, Aljazeera

  • As Europe struggles under widespread spending cuts, it seems that the theory behind austerity may, in fact, be flawed.
  • Earth to Washington: Repeal the Sequester

 

Section(s): 

Obama should have listened to Paul Krugman

Walden Bello, Salon 

This article is made possible with the generous contributions of all reader supported Evergreene Digest readers like you. Thank you!

Nobel Prize winning economist Paul Krugman gestures during his speech at a forum in Shanghai, China, May 12, 2009. (Imaginechina via AP Images) (Credit: Dycj - Imaginechina)

Friday, July 5, 2013 | The problem with us progressives at this time of crisis is not that we lack an alternative paradigm to pit against the discredited neoliberal paradigm. No, the elements of the alternative based on the values of democracy, justice, equality, and environmental sustainability are there and have been there for some time, the product of collective intellectual and activist work over the last few decades.

The key problem is the failure of progressives to translate their vision and values into a program that is convincing and connects with the people trapped in the terrible existential conditions created by the global financial crisis. This fluid process is preeminently political. It requires translating a strategic perspective into a tactical program that takes advantage of the opportunities, ambiguities, and contradictions of the present moment to construct a critical mass for progressive change from diverse class and social forces.

Full story…

Related:

Paul Krugman’s right: Austerity kills, David Stuckler and Sanjay Basu, Salon

  • Austerity kills -- radical cuts destroy economies and lives, and the honest numbers and economics keep proving it.
  • Excerpted from "The Body Economic: Why Austerity Kills"
  • How America Became a Third World Country (2013-2023)
  • The Real Cost of Austerity
Section(s): 

IMF | Sequester Hurting U.S. Economy, Delaying Recovery

  • The International Monetary Fund (IMF) estimates growth of just 1.9 percent this year, as Managing Director Christine Lagarde said "very significant" decreases in federal spending and higher taxes may have reduced growth by up to 1.75 percentage points.
  • Austerity is Dead

Shahien Nasiripour, Huffington Post

This article is made possible with the generous contributions of all reader supported Evergreene Digest readers like you. Thank you!

06/14/2013 | As much as half of U.S. economic growth this year has been slashed due to tax increases and indiscriminate federal spending cuts known as sequestration, according to a sobering new forecast by the International Monetary Fund, which urged lawmakers to repeal the cuts.

Risks to U.S. growth are "modestly tilted to the downside," the IMF said in its annual report on the nation's economy, as a reduction of $85 billion in government expenditures this year due to sequestration has dampened demand and investment, just as tax hikes have taken a big bite out of U.S. paychecks and reduced household spending.

Full story…

Related: 

Austerity is Dead, Progress Report, ThinkProgress 

  • It’s Time to Focus on Jobs & Growth
  • Paul Krugman | Debunked Reinhart-Rogoff Paper 'Did A Lot Of Damage' 

 

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