“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.
Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.
Paul Krugman: Keynes Was Right
“The boom, not the slump, is the right time for austerity at the Treasury.” So declared John Maynard Keynes in 1937, even as F.D.R. was about to prove him right by trying to balance the budget too soon, sending the United States economy – which had been steadily recovering up to that point – into a severe recession. Slashing government spending in a depressed economy depresses the economy further; austerity should wait until a strong recovery is well under way.
Unfortunately, in late 2010 and early 2011, politicians and policy makers in much of the Western world believed that they knew better, that we should focus on deficits, not jobs, even though our economies had barely begun to recover from the slump that followed the financial crisis. And by acting on that anti-Keynesian belief, they ended up proving Keynes right all over again.
Richard (RJ) Eskow: Notable Death of the Year: RIP Austerity Economics, 1921-2011
This is the time of year when we’re reminded of all the famous people who died over the last twelve months, a list which includes two of my favorite guitar players (Hubert Sumlin and Cornell Dupree). But there were also some notable non-human deaths in 2011, especially in the world of economic policy.
One of those deaths should have completely altered the political debate in Washington. The name of the deceased was “Austerity Economics,” and it was first glimpsed in a 1921 paper by conservative economist Frank Wright. Austerity died of natural causes brought on by prolonged exposure to reality.
But the debate in Washington didn’t change nearly enough after its passing. In the nation’s capital, dead things still rule the night.
The US is struggling with a paradox: while its military power retains global reach, its role as world leader is gradually ending
The time has long since past when it became fashionable to talk about a new world order. The collapse of the Soviet Union provided an opportunity to fashion one. But instead of using that opportunity to create a new security architecture in Europe, Nato expanded eastwards as the military anchor for democracy promotion. Not content to have seen off one global military competitor in the Soviet Union, the western military industrial complex and the think-tanks they funded scurried around for a worthy replacement. When 11 September happened, they thought they were in business again. For a brief moment, al-Qaida seemed to fulfil some of the characteristics of communism: it could pop up anywhere in the world; it was an existential enemy, driven ideologically and uncontainable through negotiation; and it was potentially voluminous. Neither the doctrines of the pre-emptive strike, nor attacking a foreign country abroad to ensure security at home, were new. Swap the domino theory of the Vietnam era for the crescent of crisis of the Bush and Obama eras, and you had the same formula for a foe that hopscotched across the globe.
Mike Ervin: Why the Payroll Tax Deal Is Bad for People With Disabilities
Hold the applause: Extending the payroll tax cuts is a bad deal for nearly 9 million disabled Americans who rely on Social Security Disability Insurance for survival.
Like millions of Americans, my first paycheck of 2011 was slightly larger because of the tax relief provided by the one-year reduction in my Social Security payroll taxes. But I didn’t feel much of a sense of relief. As a person with a disability who will someday soon need Social Security Disability Insurance, I feared that raiding Social Security was a dangerous precedent that would continue far beyond one year.
Danny Schechter: It’s Time to Occupy a New Year
Out with the old. I would say good riddance to 2011 even as I fear 2012 may be worse, given the financial trends, social chaos and political idiocy that we confront every day.
Every time I believe it can’t get worse, it does.
It seems so clear that the political system is moribund and paralyzed and the economic system may be in worse shape.
A tiny sliver of the 1% may be in charge although not in control. Their own short-term greed makes it unlikely that they can stabilize the system or do any longer term planning. Their Titanic has hit its iceberg. Some new technologies may be keeping it afloat for now but for how long?
We lurch from crisis to crisis in an atmosphere of deep denial.
New York Times Editorial: Iran and the Strait
Iran’s threat to shut the Strait of Hormuz – one-fifth of the world’s oil trade passes through there – if the United States and Europe press ahead with new sanctions is unacceptable. The Obama administration is right to signal, in deliberately moderated ways, that Washington will not back off if Tehran ever attempts to carry it out.
A show of American naval force kept the strait open to oil tankers during the Iran-Iraq war in the 1980s. A Fifth Fleet spokeswoman usefully reminded Iran this week that the Navy always stands “ready to counter malevolent actions to ensure freedom of navigation.” Oil markets reacted calmly, at least for now, with no price spikes.
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