He thinks aiming for balanced budgets (via tax increases) and being careful like the Germans is a dangerous mistake. He points to the examples of the US in 1937 and Japan in 1996-1997. Peak oil is not an energy crisis. It is a liquid fuel crisis.
I read Krugman as saying that it's the wrong time to be careful and reduce the demand of the 80% of the population that consumes everything they earn and more.
But we know that in the case of USA, it's on the wealthy that the tax increase should go -they pay a lower rate than the median earners... Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
At a certain point, when repeated, the general policy becomes the answer to the crisis.
Bonddad on kos, who I don't usually care for, has a good piece on what happens when you play it by the so-called "rules" and adhere to the general policy. Fai de bèn a Bertrand, te lou rendra en cagant
