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Preview How to Read a Nobel Prize Winning Krugman Editorial in the Newspaper Why is European Style Socialism so in Vogue when it Seems to Be an Even Bigger Failure Than More Pure Forms of Capitalism? Lex Loeb Contributor Network . Here in Portland, Oregon , the Oregonian our main daily newspaper is shrinking as the internet seems to be sucking the advertising revenue out of it. In desperation the Oregonian seems to be expanding the obituary section. This certainly seems to be a sign of a coming great depression if anything does? True Journalists and writers can see the impending hazzard of an economic recession up front and personal with decline of newspapers. The New York Times is apparently financially sound as it appears to be the citigroup of newspapers on the basis of share price. So it is reasonable to assume that the reason Krugman's thesis of an impending depression is making a lot of sense to the newspaper editors and jornalists. There is no evidence that we are necessarily on the verge of an economic depression just because of debt loads , The strange thing about Krugman belivers is that their solution to the problem of national debt is to move the debt to the government from the private sector and expand it. The world economies are all contracting at once and some that have not contracted yet probably will. The problem is that the statistics show that the US economy is still doing better than a lot of other economies. There are lower unemployment rates than in more socialist european models of prosperity. China's success seems to be more based on swashbuckling freedom of personal choice than on government spending. We have before and after data. China's economy before capitalism was a nice plate for chow mein with out any food in it. Much of Europe is now moving from a boom time with 15 % unemployement to over 20 while the US is going from 6 percent to something over ten percent. This does not mean it can't get worse for the US. One sure way is to follow Europe and raise taxes to give entrenched accademics power to give us fake Kyoto standards like Europe pretends to abide by. There are a bunch of people in the national media telling us our banks may need to be nationalized even when they are not all failing so as for the government to redistribute ownership. The question might be that if time is money why government just does not extend the time in which debt payments come due . If people everyone had extra time to pay off debts a lot of forclosures could just be postponed. This is a great way to explain why a tax cut for everyone is a better idea for a stimulus plan than creating government debt for the sake of bunch of special intersts and their post election politicval pay off expectations. Government gets its taxes sooner or later and they know it. Right now most people are unaware that major losses on wall street are creating vast opportunities of the rich to defer taxes durring most of the obama administration so they will not be paying higher taxes as promised. The democrats love special tax breaks in the ever more complicated IRS regulations. The super rich like Bernie Madoff who sent so much money for the election of President Obama did so because they know they just really collect taxes from others to pay the government. In Madoff"s case he probably just paid token taxes otherwise it would seem like he was running a ponzi scheme had he reported no income. Why is a new great depression something so many people seem to be dreaming of? What it does is allows people who otherwise used to be university accademics to gain power in government and to make sure they get paid more than they used to. It is funny how so many accademics seem to think that there is something scientific about Marxism when Karl Marx really had no scientific training what so ever. Russia emerged from an 80 year great depression where people lined up for not just hours but for days to buy meat and butter but they did have great subway stations built by Stalin to feel proud of their proverty. How to read Krugman? First you have to decide it you agree with his basic assumptions. The first being that you , yourself , have too much power of free choice in your life and that someone else , like Krugman, has a better idea of how to spend your money or rather borrow it. Krugman seems to be one of those people who think you make awefully bad decisions and you need someone to guide you. There is Utopia and you can't see it on the horizon but you might if you are fearful of the coming great depression. There are things that you might need to learn which were not taught to you in high school. Most Americans are not aware that there are proper reasons to borrow money and improper ones. One borrows money to attempt to get a higher return on an investment. That kind of leverage can be very good. When inflation comes back , which is what one has to assume Krugman is promising as the alternative to dreaded deflation of a great depression. You had better borrow more money than ever to retain any buying power? Borrowing money for fancy leased cars and granite kitchens and bathrooms is a waste of money with home prices declining and it probably was a waste of money when home prices were ascending into the stratisphere too. Having government build communter fancy commuter trains for Princeton and Stanford professors to commute to work in can be just as much of a waste of money for a government as a common citizen borrowing money for a fancy new kitchen. Debt is debt . Government being in debt is not the best idea. . Close


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