It’s Witch-Hunt Season – Paul Krugman, NYTimes.com

It’s Witch-Hunt Season – NYTimes.

Nobel laureate economist Paul Krugman

This Op-Ed article by Nobel laureate economist Paul Krugman sums up the current Republican/Tea Party hysteria quite well.  I suggest it to everyone – especially given the sudden rise of irresponsible right-wing extremism. Read more of this post

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Economic Policy Wars by Ryan Rhoades

So let me get this straight.

We are in the worst economic downturn since the Great Depression.  The national unemployment rate stands at 9.5%, is at least 10% in 128 metropolitan areas and over 15% in twelve of the largest urban areas.  The ratio of unemployed persons to job openings stood at 5.4 to 1 in January, slightly lower than in December, when the ratio was six-to-one1.

Teachers, police officers and other service workers are getting laid off, taking pay cuts or getting furloughed.  Since August of 2008, over 180,000 local government jobs have been lost.   Estimated projections show that local public-sector job losses are only going to increase through 2012 due to budget cuts2.

With all this happening now, some politicians, news commentators and pundits are preaching fiscal austerity – suddenly concerned about the deficit and our national debt.

I say suddenly because many of the same people calling for reducing the national deficit by cutting programs and gutting state budgets were suspiciously silent during Bush’s rampage on the economy.  For instance, the Center on Budget and Policy Priorities found that , “just two policies dating from the Bush Administration — tax cuts and the wars in Iraq and Afghanistan — accounted for over $500 billion of the deficit in 2009 and will account for almost $7 trillion in deficits in 2009 through 2019, including the associated debt-service costs”3.

These critics – mostly Republicans but more specifically fiscal conservatives supportive of ‘Reaganomic’ policies – are intent on cutting government spending while also calling for the renewal of Bush’s tax cuts on the wealthiest Americans.  Bush’s tax cuts are set to expire this year.  In 2008 alone, the tax cuts for the wealthiest 1% totaled $79.5 billion4.  That’s enough money to hire well over 2 million workers for one year on a modest $35,000 salary.  Such a jobs creation program reminiscent of the New Deal is clearly more important than extending tax cuts for the superrich. Read more of this post