Category Archives: Social spending

Government Social Spending and Government Debt: The Troubles of Europe

Paul Krugman, once again, throws cold water on the right-wing claim that  Europe’s troubles are the consequence of excess government spending on social support programs. It’s necessary to do this every once in a while: the facts are beyond the grasp of most Republicans and their media flacks:

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Deficits and IV-Bags

NPR broadcast an interview this morning with economist James Galbraith (U of Texas, Austin), who likens the federal deficit to an IV-bag in an emergency room, a lifeline to a very sick patient. The interview is a follow-up to Galbraith’s recent article in the Los Angeles Times (scroll down through the ads). The Morning Edition interviewer is David Greene:

Introduction (Greene). Many people have expressed concern about the deficit. Families who say they don’t like to carry debt say they don’t really like the idea of the country being weighed down by the same problem. Economists have long debated this point, and many say that a federal deficit is not such a bad thing. One economist who holds this view is Professor James Galbraith from the University of Texas. We reached him in Vermont.

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Mark Thoma: How Republicans Stoked Economic Uncertainty

Mark Thoma tells how “economic uncertainty” has been the main Republican talking point since last summer:

How Republicans Stoked Economic Uncertainty, by Mark Thoma, Column, The Fiscal Times: Prior to the midterm elections, Republicans made a big issue out of the economic uncertainty supposedly created by Democrats in areas such as health care reform, financial reform, future tax rates, the deficit, environmental regulation, and the long-run viability of our social insurance programs.

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American Puzzle Solved! Robert Reich Explains All in 2 Minutes

Hat tip,

American Puzzle: Income Rich, Revenue Poor

Listen to Republicans long enough, and you might believe we’re burdened with taxes like no one else. And many Democrats buy into this story too. But it is a well documented fact that the U.S. is one of the least taxed nations in the advanced industrial world. To deal with Medicare, the need for revenue is unavoidable. The same is true for Social Security. Proposals limited to cutting taxes and government spending are just not credible. And cutting government spending does not create jobs—it creates lay-offs.

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