Uncommon Sense

politics and society are, unfortunately, much the same thing

How does increasing gov’t spending equal a funding cut?

Krugman’s Delusion: The Past Year Proves Cutting Spending Doesn’t Create Jobs
September 5, 2011 by Noel Sheppard

Exactly what country does New York Times columnist Paul Krugman actually reside in?

Before you answer, consider the following sentence from his article Monday:

Although you’d never know it listening to the ranters, the past year has actually been a pretty good test of the theory that slashing government spending actually creates jobs.

For the past year to be a good test of this theory, there would have needed to be a slash to government spending, right?

Was this the case?

Hardly.

In fiscal 2010, total federal outlays were $3.72 trillion. In fiscal 2011 which ends September 30, we’re projected to spend $3.83 trillion. That’s a $111 billion increase.

Yet this Nobel laureate in economics thinks government spending was slashed.

In reality, since the last time such outlays declined year over year was 1965, we should really be testing Krugman, Obama, and the Democrats’ theory that dramatic increases in government spending creates jobs.

Democrats have been radically increasing outlays since they took over Congress in 2007. During this time, as spending rose by 41 percent, the economy lost roughly seven million jobs sending unemployment skyrocketing from 4.4 percent to 9.1 percent.

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bias, budget, crisis, economics, economy, funding, government, ideology, left wing, liberalism, news media, pandering, politics, recession, socialism, spending

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Filed under: bias, budget, crisis, economics, economy, funding, government, ideology, left wing, liberalism, news media, pandering, politics, recession, socialism, spending

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