Showing posts with label paul krugman. Show all posts
Showing posts with label paul krugman. Show all posts

Monday, October 31, 2011

Even Paul Krugman thinks Max Boot sounds like Paul Krugman

I've poked fun at conservative defense writer Max Boot lately because of Boot's recent assertions that cutting defense spending would end up cutting American jobs in a soft economy. I noted that Boot sounded like liberal columnist Paul Krugman, and suggested that "mainstream conservative Republicans—whatever their fiscal rhetoric—have long favored the soft socialism of big defense spending."

Krugman sounds the same theme this morning, not mentioning Boot specifically, but otherwise making the same point. He calls this crowd "weaponized Keynesians," a term borrowed from Barney Frank.
First things first: Military spending does create jobs when the economy is depressed. Indeed, much of the evidence that Keynesian economics works comes from tracking the effects of past military buildups. Some liberals dislike this conclusion, but economics isn’t a morality play: spending on things you don’t like is still spending, and more spending would create more jobs.

Beyond that, there’s a point made long ago by the Polish economist Michael Kalecki: to admit that the government can create jobs is to reduce the perceived importance of business confidence.

Appeals to confidence have always been a key debating point for opponents of taxes and regulation; Wall Street’s whining about President Obama is part of a long tradition in which wealthy businessmen and their flacks argue that any hint of populism on the part of politicians will upset people like them, and that this is bad for the economy. Once you concede that the government can act directly to create jobs, however, that whining loses much of its persuasive power — so Keynesian economics must be rejected, except in those cases where it’s being used to defend lucrative contracts.
Right. I don't mind that Boot and his fellow hawks are making an economic argument for defense spending. I just wish they'd apply that same logic to the rest of government.

Monday, September 26, 2011

Max Boot still sounds like Paul Krugman

I noted recently that conservative hawk Max Boot was starting to sound like Paul Krugman. Today, he again makes the economic case for leaving the military budget untouched:
If the Pentagon is forced to slash a trillion dollars during the next decade—which would amount to an 18 percent reduction from the Obama budget projections released earlier this year—the Committee staff projects the total size of the Army and Marine Corps could fall from 771,400 personnel today to just 571,000, a 25 percent reduction that would make it impossible to respond to a range of different contingencies around the world. Some 200,000 soldiers and Marines who signed up to serve their country will be fired—and many of them will be hard put to find work at a time when the national unemployment rate is over 9 percent and the unemployment rate for young Iraq and Afghanistan veterans is believed to be over 20 percent. (For wounded veterans the rate is said to be over 40 percent.) We would not only be breaking faith with these heroes but also jeopardizing our security—and that of our allies—in the process.
Again, that's the Krugman argument against recession austerity—that reduced budgets kicks thousands and thousands of public employees off the payroll into an unwelcoming job market. Soldiers, sailors, and marines are to be exempt from this process because they provide us security. Police and firefighters, apparently, don't.

But wait. There's also our security. What valuable security interests do we have that require 771,400 soldiers and Marines that 571,000 won't? Boot doesn't answer that question—there's always danger out there, nebulous though it may be. Instead, he relies ever-more-heavily on the economics argument, even noting that cutting a number of weapons programs will result in private-sector layoffs:
Cutting all these programs will result in even more job losses—the report projects at least 25 percent of the civilian defense workforce will have to be furloughed, resulting in the elimination of 200,000 jobs.
Again: The argument applies just as well to non-defense sectors of government spending.

Do we owe our veterans something more than unfettered capitalism? Maybe. Do we need to have a rough-and-ready defense force ready to protect our country? Sure. But the government is tightening its belt. We have to live within our means—and maybe that means giving up the ability to invade countries on the other side of the planet.  But if the primary argument against defense cuts is that it will harm the economy, and the unemployment rate, then that argument applies to the rest of government as well. Our military is special—but it's not that special.

Tuesday, March 30, 2010

For all you Obama-hating deficit hawks out there

Via Paul Krugman, a graphical representation of how the two Bush tax cuts, the Iraq War and the new health reform law impact the federal budget:

Stuff like this is why it's so hard for me not to think of the Tea Partiers as, essentially, sore losers.