Friday, February 25, 2011

Krugman and Sachs, leading economists, take on Walker's attacks on the working middle class

Nobel Prize winning economist writes:
What’s happening in Wisconsin is...a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy. And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside.

The article is linked here.

Watch this video:

Columbia University Professor Jeffrey Sachs: inequality is greater than it has ever been in America, the middle class is in rapid decline and Republican governors want amazingly to crush unions that are one of the few institutions that speak and fight for the working middle class


the other side of the coin said...

I'd like to comment on your post but in all honesty when I see Krugman in the title, I know it's not worth reading. Even Sachs think Keynesian economics is wrong during this economic crisis.

I agree with everything in the above article and most of his other writings. It would serve your blog followers well to goggle his other articles. He gets it.

Alex said...

Did you happen to read the Financial Times article that you sent?

While the author thinks that the stimulus failed, look at the main points:

1) Government should invest in higher education and infrastructure.

2) The government should solidify safety nets

3) Government should support new transportation infrastructure and exportation of goods

4) Governments should insist that the rich pay more income tax to redistribute wealth.

If this is what you believe? If so, it sounds like it involves a lot of government intervention to restore the economy, and the actions he suggests are quite orthogonal to the ones proposed by Scott Walker.

the other side of the coin said...

Perhaps I wasn't clear. Let me restate my comment:
"I agree with everything in the above article and most of his other writings." Is that clear enough?

Where in his article and in my comments is "Walker" mentioned?

Keynesian policies have failed (something Krugamn has failed to grasp). Precious time and money were wasted. Medium term budgets and long term planning are his suggestions for the future. And yes, the four points you mentioned are part of the long term planning.

Go the the HuffPost and search Sachs. Lots of articles. Lots of ideas. He is not afraid to point out the failures of both political parties. Are you?

Alex said...

Whoops. I read to the link and never looked back. All political parties are flawed, and I don't mind acknowledging their shortcomings (or my mistake of not reading on).

I think the stimulus was mislabeled; if anything, it was a stabilization measure, not a stimulant.