From the diaries, by Erick.
Today’s New York Times features Paul Krugman continuing his role in Obama propaganda machine while pretending to be an Economist. In today’s installment of “I have a Nobel, so I must know Economics”, Krugman lashes out at “The Destructive Center”.
Before I spend a few paragraphs taking issue with Krugman’s direct points, I think we first have to reflect on how far we’ve come as a country. Just one decade ago, it was a “vast right wing conspiracy” that was the enemy of the left, the only thing holding them back from a collectivist utopia. Today, the “destructive center” is thwarting their attainment of nirvana. These poor guys just can’t seem to catch a break.
Krugman first frames the stimulus bill as a bill that “eliminates hundreds of thousands of American jobs, deprives millions of adequate health care and nutrition, (and) undermines schools”. It’s usually rich enough when the government can’t spend enough crowd calls a reduction in the growth of next year’s trendline a “cut”, but seriously, we’re now resulting to calling trimming $900 Billion in off-budget, new spending to a pittance under $800 Billion a cut? Really? Spending $800 Million on pet projects of the democratic machine is depriving millions of adequate healthcare? Blowing almost $1 Trillion “undermines schools”? Why exactly must we pass this bill today if it will “eliminate hundreds of thousands of American jobs”?
As usual, these guys would be hysterically humorous if they weren’t trying to see how fast they could crater what’s left of our economic system.
But Krugman’s real fire is aimed at one of the few, common sense oriented and market based solutions in the bill – A $15,000 tax cut for those willing to wade into this ultra-risky housing market and buy. He refers to it as “a $15,000 bonus to affluent people who flip their houses” and the “flip your house to your brother” provision.
As usual, Krugman doesn’t let actual facts get in the way of his “compelling” arguments. There is both a 2 year holding provision for someone to be eligible for this credit. Most home flippers are out of business if they can’t unload inventory in 3 to 6 months. And as for family members, they aren’t eligible, as the tax credit does not apply if the purchase is from a family member.
Krugman apparently has never had a job in the real world, or at least not one at a for profit entity. But the man behind this provision has. Senator Johnny Isakson (R-GA) had a long and distinguished career as one of Georgia’s premier real estate brokers before entering the U.S. Congress. He remembers firsthand how a similar incentive in the early 1970’s cleared up an oversupply of residential real estate similar in magnitude to the one that we have today. It is from his practical experience that he understands that nudging an unsure market with temporary incentives can pull unsure buyers off the sidelines, and restore faith in a market that currently has none.
Despite not supporting the overall stimulus package, Isakson has worked tirelessly to get this amendment he authored added to the current bill, along with co-sponsors Lieberman, Enzi, Corker, and Chambliss. While maintaining one of the most conservative voting records in the Senate, Isakson does not believe there is a “destructive center”. Instead, he remains a steadfast conservative with an uncommon gift of pragmatism.
Isakson hasn’t forgotten the “real world” that he lives in outside of Washington. One where real people understand the value of $15,000, He understands that as vacant neighborhoods become populated, jobs are created, taxes are paid, and economic life returns to normal. But I wouldn’t expect Paul Krugman to understand this. He thinks not printing an extra $100 Billion and have it fall from the sky is a “cut”.
Someone should look into whether or not the Nobel Committee can be sued for incompetence.