I wrote recently about Paul Krugman and his struggle with the “austerians” — people who just know know know that austerity is the solution to this (or any) economic crisis.
The video below is a prime example. It’s a clip from MSNBC’s morning show Morning Joe — Joe Scarborough and Mika Brzezinski plus guests talking with (and at) Paul Krugman about ideas that are taught in Econ 101.
That’s Ed Rendell chiming in from time to time. When he’s not getting an evening–MSNBC liberal-cred paint job, he’s working for Fix the Debt, the corp- and CEO-funded move to take down the social insurance programs. Who runs Fix the Debt? Obama’s Catfood Commission chairs, Simpson & Bowles of course. (More on Fix the Debt, Ed Rendell and yes, supposed liberal Antonio Villaraigosa here.)
The obvious point — Econ 101–obvious — is that in a demand-driven recession (one where no one is buying), boosting supply is pointless. It just enriches the suppliers (which is the point, when suppliers make the case). If no one’s buying, giving money to factory owners won’t make them build more stuff — the shelves are already full. It just lines their pockets.
Some fun samples from the clip:
■ Ed Rendell said the best way to stimulate the economy was to get the debt under control. To which Krugman replied, ”Have you been living in the same country I’m in these past five years?” This is their only song, their constant theme. You’ll hear it many times in this segment; h/t Susie Madrak for the Rendell version. Note also, this is how Ed Rendell earns his keep. He spouts this stuff for pay, even if he believes it as well.
■ And later: “How many times do people like these have to be wrong and people like me have to be right?” Answer: An infinite number, Paul. For the reasons stated here.
Consider this gay-fearing San Francisco 49er counter-programming. Enjoy.
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