Krugman: Stimulus Didn't Fail Because 'It Never Happened'
Wednesday, 16 Feb 2011 01:25 PM
By Forrest Jones Federal stimulus programs designed to kick-start the economy
can't be labeled as failures because in reality, they never led
to a surge in public spending, says Nobel economist Paul
Krugman. President Barack Obama recently unveiled his $3.7 trillion budget for 2012, which the administration says will put the brakes on public spending by freezing some programs. The budget assumes the economy will recover and with it, so will the tax base, thus narrowing this year's $1.6 trillion federal deficit to around $600 billion after five years. Despite spending cuts as well as tax hikes that are to come, the government's total debt would mushroom to $21 trillion by 2016 from $14.2 trillion now, according to the Associated Press. Republicans say Obama's budget blueprint doesn't address debt issues enough. "People vote for presidents because they want leadership," says House Budget Committee Chairman Paul Ryan, R-Wis. "They expect presidents to take on the greatest challenges facing the country. Well, the biggest crisis we have is the debt, and he's doing absolutely nothing to get it under control." © Moneynews. All rights reserved. |