Krugman: Raising Taxes Worsened Depression But Obama Should Do The Exact Same Thing
Oy!
PAUL KRUGMAN, NEW YORK TIMES: What actually happened was, you know, there was an enor, there was a collapse in the financial system, which was not restored for a long time. There was a persistent deep slump in consumer demand, and therefore no investment demand and so you’re stuck in this trap. Roosevelt got the economy moving somewhat. By 1937 things were a lot better than they were in 1933…
GEORGE WILL: And then they tanked (?)…
KRUGMAN: …then he was persuaded to balance the budget, or try to, and he raised taxes and cut spending, and the economy went back down again, and it took an enormous public works program known as World War II to bring the economy out of a Depression………………
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No, I think, the way people like me are pushing, I think what will happen is there is going to be push for legislation to do things like healthcare. But that wasn’t really ever going to happen. It wasn’t going to actually go into effect until 2011, cause we weren’t going to so much raise taxes as let the Bush tax cuts expire at the end of 2010.
Letting the tax cuts expire is a tax increase on every working American!
November 19, 2008 - 01:34 AM on November 19th, 2008
[...] Krugman: Raising Taxes Worsened Depression But Obama Should Do The … GEORGE WILL: And then they tanked (?)… KRUGMAN: …then he was persuaded to balance the budget, or try to, and he raised taxes and cut spending, and the economy went back down again, and it took an enormous public works program known as … [...]