Spot the Problem
My major argument against most economists is that they cannot answer basic questions they can only offer mechanics of action. Case in point, Mr. Krugmans post today:
Krugman explains that the trouble makers of Greece, Ireland, Spain and Portugal are small fish:
Overall, the group of stressed economies account for about 20 percent of the eurozone’s GDP. So even a sharp fiscal retrenchment wouldn’t be all that big a shock; still, it certainly wouldn’t help.
No big deal.
What Mr. Krugman fails to address is the plight of these countries sounds all too familiar:
-too much spending
-low tax revenue
-crushing social cost spending
-long term structural issues with capital management
To am economist a Euro led bailout solves the problem because Greece will not default TODAY. They offer no help as to changing the situation on the ground that may actually help these countries turn things around.
Pretend and Extend just went global and I guess if you kick the can across time zones enough times maybe the can will never stop rolling. Better hope so because the Krugman's of the world will not have anything constructive to say at that point.
Have a good night.