Paul Krugman: Romney Victory Could Mean 'Double-Dip Recession'

[ProfessionalLeftist]

"I think there's a real chance that he'll manage to pursue a policy in the first couple of years that simultaneously blows up the deficit and depresses the economy," the Nobel Prize-winning economist said on HuffPost Live Wednesday. "Tax cuts for the rich, who won't spend them, and slash spending for the poor and the middle class, who will be forced to cut back. And so we end up managing to have a simultaneous deficit explosion and double-dip recession."

Tax cuts for the rich do not help economic growth, according to two recent studies, and some analyses have found that Romney's proposed tax cuts would help the wealthy the most. Romney also has promised to slash government spending by roughly one-fifth, which economists say would hurt consumer demand. But it is unclear whether Romney would be able to cut government spending so dramatically if Democrats maintain a majority in the Senate.

Krugman said that over the long term, Romney's economic policies could lead to a "depression," saying: "It's the Republican policies that are much more likely to make us end up like Greece."

MORE (including video):

http://www.huffingtonpost.com/2012/10/24/paul-krugman-mitt-romney-recession_n_2008847.html

[porphyrian]

1. They would love the chance to put down violent protests. n/t

[patrice]

5. That would be a big strategic win for them. nt

[Warpy]

2. He's far too optimistic

Putting the Republicans back into control would lead to more tax breaks for the wealthy, more money shoved at the Pentagon, and the elimination of all deductions for working and middle class people, including the personal deductions for filers and dependents, to pay for it.

That spells "Depression" to me.

[RKP5637]

3. I've known/know quite wealthy people (friends) and the last thing they would ever do is

hire someone because of a tax break, personally or company. The tax crap is a bunch of bullshit to further line the pockets of the wealthy elite and if one knows someone of great wealth and they are honest, they will tell one exactly the same. If it worked with the Bush tax cuts, for example, we would have no difficulties today. What a bunch of unmitigated bullshit this tax cut crap is ...

[Selatius]

6. What they don't broadcast is that businessmen hire as an absolute last resort.

Any good capitalist would put off hiring more staff until absolutely necessary.

It simply raises costs for the owner.

In the mean time, the owner will schedule more hours for current employees to try to answer increased demand. It is only when that is insufficient that he'll consider hiring more people or risk having his market share undercut by competitors who can soak up the extra customers.

[RKP5637]

7. Exactly! Hiring and Capitalism are like mixing oil and water. No true capitalist wants to hire people

and tax advantages do not equate to increased hiring. I just don't get why so many Americans are so easily duped by these simplistic statements that tax cuts = a direct correlation to increased hiring.

[Harry_Scrote]

4. OF COURSE IT COULD!!

Duh, Krugman. I'm no economics wizard, but I can tell Romney's fiscal policies would take us over that cliff. Don't wanna go there.