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Dr. Paul Krugman is right about the economy!

May 21, 2012

Do we need Austerity or a Stimulus to solve the economic crisis in Spain? The Nobel laureate was interviewed this morning by Farid Zacharia on CNN. Austerity will be a dead-end in Europe and elsewhere. The Republicans are wrong. Let me elaborate on what he said about the Stimulus: We need to print, borrow, tax and accumulate a large pool of money. The money should be used to build infrastructure and industries, not a penny to be wasted on unproductive jobs, wars or activities. Behavioral success in utilizing the money will generate productive jobs, revenues and shrink the deficit without austerity measures!

Well, sounds easy to do? It is. Will Obama or Romney do it? No. Why? Because they both think the old way of  “Classical Economics.”  We need “Behavioral Economics,” A monetary system that allows government to print extra money only if its use is productive and efficient and not a penny is wasted on dead-end projects. Look at your own  life, dude, if you don’t waste money the next 10 years, you’ll be wealthy!!!! If you pay off the mortgage and balance your budget you will always stay – poor!

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