Friday, March 04, 2011

Bertram Scudder



Why is it so easy to pick apart a Nobel Economics Prize winning "journalist" like Paul Krugman? In his latest piece, "How to Kill a Recovery," Mr. Krugman's first mistake is to assume that there is an economic recovery in the first place. The timing of the article is suspicious as well, following hard upon the news of a "reduced" unemployment rate. Here's the meat, if you will, of Krugman's stupid article:
So we’ve gone through years of high unemployment and inadequate growth. Despite the pain, however, American families have gradually improved their financial position. And in the past few months there have been signs of an emerging virtuous circle. As families have repaired their finances, they have increased their spending; as consumer demand has started to revive, businesses have become more willing to invest; and all this has led to an expanding economy, which further improves families’ financial situation.

But it’s still a fragile process, especially given the effects of rising oil and food prices. These price rises have little to do with U.S. policy; they’re mainly because of growing demand from China and other emerging markets, on one side, and disruption of supply from political turmoil and terrible weather on the other. But they’re a hit to purchasing power at an especially awkward time. And things will be much worse if the Federal Reserve and other central banks mistakenly respond to higher headline inflation by raising interest rates.

The clear and present danger to recovery, however, comes from politics — specifically, the demand from House Republicans that the government immediately slash spending on infant nutrition, disease control, clean water and more. Quite aside from their negative long-run consequences, these cuts would lead, directly and indirectly, to the elimination of hundreds of thousands of jobs — and this could short-circuit the virtuous circle of rising incomes and improving finances. [emphasis mine]

Spending is up because things are more expensive. Things are more expensive as a result of our destructive policies, such as an increase in the minimum wage, higher energy prices, biofuels, more regulation of industry, more regulation on small businesses, an uncertain tax future, corporate and individual welfare, not to mention the effects of ObamaCare implementation.

This administration is thumbing its nose at the Constitution and the rule of law, to wit: Non-enforcement of DOMA, and the rejection of Judge Vinson's ruling that ObamaCare is unconstitutional. Lawlessness begets lawlessness.

Speaking of unconstitutional, spending, as the President famously said, "one dime" on things such as "infant nutrition, disease control, clean water and more" is wholly unconstitutional. I refer the reader to Article I, Section 8 of the U.S. Constitution. There is a reason why Congress's powers are limited, as we are now witnessing.

Yes, Mr. Krugman, those cuts would lead to the elimination of hundreds of thousands of jobs. Government jobs, that is. And that would be a good thing. Think about what you do during the day, and see if there is anything into which federal government does not exert its influence. You cannot even flush your toilet without them saying how much water you can use.

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