No Grecian Formula, Turning Japanese Instead
A lot has been said by people regarding the recent Greek collapse and its relationship to the direction the Obama Administration is taking the United States, for instance Red State:
Are we watching Americas future being played out in the streets of Athens, Greece? If Barack Obama has his way the troubles that are now destroying the Nation of Greece could very well be what lies ahead for The United States.
Yet while the evidence that socialism is a deathtrap is literally all over the place, the Obama people continue to push the US in that direction.
Paul Krugman takes issue with this comparison.
But the truth is that policy makers aren’t doing too much; they’re doing too little. Recent data don’t suggest that America is heading for a Greece-style collapse of investor confidence. Instead, they suggest that we may be heading for a Japan-style lost decade, trapped in a prolonged era of high unemployment and slow growth.
After examples of interest rates, inflation and unemployment, Krugman gets to the crux of the issue on why steps aren’t being made to improve the US economy:
In short, fear of imaginary threats has prevented any effective response to the real danger facing our economy.
Will the worst happen? Not necessarily. Maybe the economic measures already taken will end up doing the trick, jump-starting a self-sustaining recovery. Certainly, that’s what we’re all hoping. But hope is not a plan.
Tags: The Economy
Everything happens for a reason, simply put there is no real reason for the economy and unemployment to get “better” in the short term. But the Japenese “lost decade” is a better comparison than Greece,although niether is even close. I expect a slow, uneven recovery that benefits the powerfull and not so much the weak.What is really pathetic though is the conservative assertion that Socialism is a “death trap”, thats utter crap. Some elements of Socialism have been existed in American and European countries for 80 years. If Redstate mouths this lie it is in service to Propaganda, nothing more.