Professor Krugman and Crude Keynesianism

[Markekohut]

I dislike myself for entering these discussions but
1) Sachs wants COMMITTED LONG TERM stimulus investments in other words. The Fed's recent words on how long the interest rates will last--until unemployment hits a certain number not just a narrow time frame---promise the business certainty that seems to have kicked in (for investment and hiring) this month at least

2) Krugman wants short-term stimulus because he is writing Econ policy recommendations. He 
Has written of when long-term debt needs tackled.

3) Growth of spending is going steadily down and will continue as long as growth continues to bring in increased taxes, etc.
       3a) interest on debt is a major spending driver, which again goes down as Econ growth lowers shortfall then tips over to paying it down. 
        3b) growth of health care expense is falling.....no one is sure if that is structural or temporary
But if that continues.......long-term debt plummets fast. ( I see and hear of the myriad ways that here in these Untied States, health care expenses are being reshape....from Med Express clinics, to insurance companies lowering premiums for witting smoking, for losing weight, etc.

4) it is too easy for Sachs to outline his quite liberally radical belief in what he hoped had happened w taxes, etc. then find the status quo almost as bad as it had been. 



Sent from my iPad

On Mar 11, 2013, at 1:06 PM, Kai Frederik Lorentzen <lorentzen at hotmail.de> wrote:

> 
> http://www.huffingtonpost.com/jeffrey-sachs/professor-krugman-and-cru_b_2845773.html
> 
> Still remember Krugman saying in 2011 that if we throw good money after bad then Greece will export high level industrial goods to Germany by the year 2013.
> 
>