tag:blogger.com,1999:blog-6581878909892933632.post3024298787921234314..comments2023-09-25T01:47:40.058-07:00Comments on The Commission of Ideas: Krugman and Layard Launch Manifesto for Economic SenseCommission of Ideashttp://www.blogger.com/profile/12094091283732680969noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6581878909892933632.post-6737515759855509652012-07-09T04:03:46.671-07:002012-07-09T04:03:46.671-07:00Krugman only talks Keynesian counter-cyclical gove...Krugman only talks Keynesian counter-cyclical government spending, a solution to short-term inventory-related cycles, but a disastrous policy yielding only growing government debt when the market environment reduces the multiplier on government spending to a very low level.<br /><br />My understanding is that debt cycle crises don't end till losses are recognized and asset values and ownership allocations are reset properly.<br /><br />This solution is being avoided at all costs by cabals of elites in all developed economies and in China. While impressed by the length of the road down which cans can be kicked, I am unimpressed by actions taken by democratically elected governments seemingly owned by big campaign contributors looking after their own selfish interests.<br /><br />Instead of the "Krugman Slide" down the slippery slope of growing federal debt in the US, we need here a way of unlocking the huge cash positions in the private economy in ways that efficiently create jobs with a high multiplier effect, and we need a way this can be done without more federal borrowing.<br /><br />A "future tax" to be phased in on, say, carbon emissions, seems like the best, cheapest, and most timely and effective way to stimulate business investment now without adding to the federal deficit.<br /><br />Does any reader have a better idea?Anonymoushttps://www.blogger.com/profile/14393866945018138056noreply@blogger.com