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Don't Just Be Afraid Amid Market Chaos—Be Angry

Deficit hawks exploited this crisis and made it worse: Krugman

By Matt Cantor, Newser Staff

Posted Aug 12, 2011 1:57 PM CDT

(Newser) – All this stock market turbulence should make you not only afraid but mad, writes Paul Krugman in the New York Times. That's because deficit hawks have worsened the mess by "hijacking" the crisis to focus on their “favorite hobbyhorse," he writes. "What the market was saying—almost shouting—was, 'We’re not worried about the deficit! We’re worried about the weak economy!'" To fix the economy, we need jobs, and we need more government spending to make those jobs possible.

It's not just "hard-line Republicans" who are to blame for the misplaced focus. "Self-proclaimed centrists” dominate the national discussion by calling for long-term solutions such as entitlement reform to our economic troubles; they’ll say “there are no short-run fixes.” But “right now the economy desperately needs a short-run fix. When you’re bleeding profusely from an open wound, you want a doctor who binds that wound up, not a doctor who lectures you on the importance of maintaining a healthy lifestyle as you get older.”

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Specialist James Ahrens works at his post on the floor of the New York Stock Exchange Wednesday. (AP Photo/Richard Drew)

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You know what’s really irresponsible? Hijacking the debate over a crisis to push for the same things you were advocating before the crisis, and letting the economy continue to bleed. - Paul Krugman

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COMMENTS

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Showing 3 of 35 comments

Jingo

Aug 13, 2011 6:33 AM CDT

S&P downgraded because Congress will not increase revenue

Non-deep-thinker

Aug 12, 2011 11:41 PM CDT

Administration spokesman Krugman has been flacking for every single Obama policy for 2 1/2 years. Now that those chickens have come home to roost, and the whole economy is swirling around the toilet bowl, blowing little bubbles and getting ready to go down the drain, Krugman's memory has vanished of ever hearing about any of this. Someone chosen randomly off the street has more credibility than this guy. -------------------------------------------------------------------------------- "Fake journalists -- Bane of the 21st century."

Count-Spatula

Aug 12, 2011 7:43 PM CDT

Yes, Paul Krugman, very good... Now take your head out of your fucking ass, and ask when a responsible journalist would demand the same of Obama.

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Don't Just Be Afraid Amid Market Chaos—Be Angry

Deficit hawks exploited this crisis and made it worse: Krugman

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OTHER STORIES ON OUR RADAR

stock market • unemployment • Paul Krugman • budget deficit • economic crisis • jobless • deficit hawks

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Krugman: Why are we obsessed with the deficit when millions need jobs?

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Washington better get focused on jobs fast: Paul Krugman

GOP Cuts Would Destroy Recovery

House Republicans relying on 'Confidence Fairy' with job-killing measures

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