Paul Krugman: Debt Ceiling Deal Is Going To Make Unemployment Worse

by Guest Sun Jul 31, 2011 9:12 pm

On ABC’s This Week, Paul Krugman warned that the proposed debt ceiling deal is going to make unemployment worse and cause more misery for the American people.

The most frustrating thing that all of Washington seems to be oblivious to the fact that millions of people in this country are going to lose or not be able to find a new job because of this deal. By averting a crisis they have added to our problems.

It is still debatable whether this deal will have the votes to pass. Our government is so dysfunctional that nothing may pass. The economic consequences of doing nothing and going into default would certainly be worse than this deal, but the millions of Americans who are struggling right now are likely to be screwed either way.

http://www.politicususa.com/en/paul-krugman-debt-ceiling-deal

by Guest Sun Jul 31, 2011 10:27 pm

Well the next few weeks are going to be interesting. Unemployment rate will not go down, it will go up.

Time to really scream for JOBS,JOBS,JOBS!!! This has to end for us.

JOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBSJOBS!!!!

Paul Krugman: Debt Ceiling Deal Is Going To Make Unemployment Worse 34243

Paul Krugman: Debt Ceiling Deal Is Going To Make Unemployment Worse 34243

by jmainframe Mon Aug 01, 2011 7:30 am

What this apparently avoided so far is the following:

1. America defaulting on its debts for the first time in its history.
2. Moody's and S&P (the once-American companies) downgrading America's credit rating.
3. Skyrocketing interest rates on everything from credit cards to mortgages.

Hopefully with this finally out of the way, for now anyway, congress can now concentrate on an EFFECTIVE plan to create jobs. If nothing else, it shows that both parties can work together to solve the country's major problems, when they have to.

We'll just have to see how this will all play out.

by rprp Mon Aug 01, 2011 8:44 am

jmainframe, I could be wrong, but hasn't Congress had years to come up with a jobs plan and this debt ceiling thing was just a recent "crisis?"

Your post is very informing and I appreciate that, but it seems to me like Congress and the President have had quite some time now.

Also, what happened to all those shovel ready projects? Maybe I missed something, but certainly nothing on the level of what FDR took place or is. Right now I am thinking that that stimulus money went to bail out the banks and wall street and save some teacher and police jobs, but that's about it. Of course, I could be wrong.

At any rate, Paul Krugman is usually right and after reading that article I feel like the situation is even more hopeless. I realize we're a huge country, but what we've really needed to do is to take it to the streets (as they do in Europe) and get organized and demand our politicians do something. I have written letters and made phone calls and sent emails and I think at this point only an in your face message will work.

But, if things are true in this article, who will have the money to actually get to the place to get the message out?

by jmainframe Mon Aug 01, 2011 12:54 pm

Rprp,

This dept ceiling came to a head now, but it was years in the making, like a lot of things in this country, which is why we're in the mess we're in right now. Unsustainable economic policies. The lack of an EFFECTIVE jobs program so far simply shows how deep and widespread this depression we're in is.

The details of the debt ceiling deal are still being reviewed by members of congress. Krugman's dire predictions are not etched in stone, but can serve as a warning. If the bulk of the spending cuts, which are to take place over 10 years, are done later rather than sooner, it can still buy us time to get people working. If that occurs, krugman's predictions will be moot.

I agree about taking to the streets. Organizing such a large and diverse group is a monumental task and up to now has failed. We must keep trying though. It's the only way we'll be heard.

by rprp Mon Aug 01, 2011 1:16 pm

jmainframe, I just heard that the vote will take place today and includes deep spending cuts. Nothing was mentioned in the blurb regarding taxes, but I do believe the Bush tax cuts are extended. Anyone correct me if I'm wrong.

I'm so incredibly angry at this point. It's obvious to me that somehow Obama sold us down the river. I no longer believe a word he says or that he wants anything good for the lower and middle classes. I don't care what he says his intentions are at this point. Actions speak louder than words.

I guess the republicans have finally won, courtesy of one who turned his back on his own base. He could have evoked the 14th amendment and not made any of this debt ceiling discussion about concessions. I hold out little hope that anyone in power cares about jobs, period. In fact, I just read something (might have been from Paul Krugman) that the powers that be have decided to do nothing about jobs. I wish I could be more of an optimist, but I simply cannot.

I'm listening to Thom Hartmann right now and he points out that if these spending cuts go through as planned, it is actually an anti-jobs deal. Well, today is a sad day.

I do hope you're right though and that I'm wrong.

by Guest Mon Aug 01, 2011 1:34 pm

rprp wrote:jmainframe, I just heard that the vote will take place today and includes deep spending cuts. Nothing was mentioned in the blurb regarding taxes, but I do believe the Bush tax cuts are extended. Anyone correct me if I'm wrong.

I'm so incredibly angry at this point. It's obvious to me that somehow Obama sold us down the river. I no longer believe a word he says or that he wants anything good for the lower and middle classes. I don't care what he says his intentions are at this point. Actions speak louder than words.

I guess the republicans have finally won, courtesy of one who turned his back on his own base. He could have evoked the 14th amendment and not made any of this debt ceiling discussion about concessions. I hold out little hope that anyone in power cares about jobs, period. In fact, I just read something (might have been from Paul Krugman) that the powers that be have decided to do nothing about jobs. I wish I could be more of an optimist, but I simply cannot.

I'm listening to Thom Hartmann right now and he points out that if these spending cuts go through as planned, it is actually an anti-jobs deal. Well, today is a sad day.

I do hope you're right though and that I'm wrong.

The Bush Tax Cuts were not extended, but they weren't repealed either. They stand until 2013. This "compromise" deal was all cuts and no revenue, in addition to the creation of a 12 member Congressional Committee to look into further cuts (just what we need Rolling Eyes

).

by gonzofl Mon Aug 01, 2011 4:27 pm

A 12 member congressional committee,6 democrats and 6 republicans. This idea is just plain silly. I see nothing but stalemate after stalemate coming out of this half baked idea. Washington has gone completely MAD and know one can stop them.