“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.
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Paul Krugman: The Mellon Doctrine
“Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.” That, according to Herbert Hoover, was the advice he received from Andrew Mellon, the Treasury secretary, as America plunged into depression. To be fair, there’s some question about whether Mellon actually said that; all we have is Hoover’s version, written many years later.
But one thing is clear: Mellon-style liquidationism is now the official doctrine of the G.O.P.
Two weeks ago, Republican staff at the Congressional Joint Economic Committee released a report, “Spend Less, Owe Less, Grow the Economy,” that argued that slashing government spending and employment in the face of a deeply depressed economy would actually create jobs. In part, they invoked the aid of the confidence fairy; more on that in a minute. But the leading argument was pure Mellon.
Robert Reich: The Awful, Unsaid Truth: We’re Heading Back Toward a Double Dip
Why aren’t Americans being told the truth about the economy? We’re heading in the direction of a double dip – but you’d never know it if you listened to the upbeat messages coming out of Wall Street and Washington.
Consumers are 70 percent of the American economy, and consumer confidence is plummeting. It’s weaker today on average than at the lowest point of the Great Recession.
The Reuters/University of Michigan survey shows a 10 point decline in March – the tenth largest drop on record. Part of that drop is attributable to rising fuel and food prices. A separate Conference Board’s index of consumer confidence, just released, shows consumer confidence at a five-month low – and a large part is due to expectations of fewer jobs and lower wages in the months ahead.
Pessimistic consumers buy less. And fewer sales spells economic trouble ahead.
Laura Flanders: Bringing the Budget Protests to New York
From Wisconsin to Indiana to right here in New York-the state capitol in Albany Wednesday night echoed as well with chants of “This is what democracy looks like” as protesters occupied the halls to protest budget cuts to education.
This time, it’s a Democratic governor, Andrew Cuomo, in the driver’s seat, and while he’s not threatening to take away union negotiating rights, the budget pushed through at 1 am contains steep cuts to primary education spending, the State University of New York, and job creation. It also allows the millionaires’ tax to expire-that’s a surtax on incomes over $1 million.
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