Economist Krugman off in analysis of debt issues

info@islandpacket.comDecember 25, 2012 

Recently, Paul Krugman, the far left economist for the New York Times, stated that we do not have a debt crisis, but a political crisis.

That is nonsense. He would be more accurate in stating that we have both a debt crisis and a political and economic leadership crisis.

Taking the position that if we can make our debt payments and the government can cover the debt, we do not have a crisis, ignores the fact that we are spending well beyond our (and our children's) ability to remain financially solvent over the longer term. The only reason we can meet our debt payments is because the Federal Reserve has driven interest rates to such a low point that borrowing is almost free. When interest rates return to normal levels, our debt position will be a real crisis with few options.

Krugman's position (similar to other radical left-wing perspectives) is precisely why we are experiencing a crisis of political and economic leadership. Fiscal responsibility and accountability have been the foundation of our country for centuries until recently.

Political expediency and economists espousing nonsense as theory and truth have replaced that philosophy. Instead of bashing Republicans, Krugman would be better served educating Americans on the pitfalls of endless deficit spending than being the political mouthpiece for the Democrats.

Tom Nickles

Hilton Head Island

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