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October 31, 2003
Krugman disses Bush's economic plan, Vol. 37
[Since Rungu's on vacation, you'll have to settle for our economic blogging today.]
That Paul Krugman just won't let up. Today's Op-Ed brings commentary on the recently reported large growth rate of our nation's economy in the third quarter. Is it for real? Is there any way at all that The K-Dawg would buy a Commerce Department report that our economy is strong again, and all is well in Bush's Land of Gigantic Deficits? Of course not!
His point is that consumer spending drove last quarter's growth, and that kind of consumer spending won't last. Especially when it's happening because of low interest rates. If people are borrowing against their homes to buy a new RV, they probably aren't going to keep buying more RVs, or fridges, or above-ground pools. Some financial theorists think that spending will be down next quarter, and Krugman thinks they're right.
Also, there still hasn't been an increase in jobs, which continued to decrease during the third quarter. Adding that to "the biggest budget deficit in the history of the planet," and things aren't looking good for Bush's economic plan, though this doesn't stop papers like the NY Post from running cover page headlines like "Bush Boom." Senator Conrad from North Dakota uses an ironic model of alcoholism out of control to describe Bush's policy: "It is a little like a drunk going on a binge. It feels good for a while but you all know that the hangover is coming."
