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Paul Krugman: Economics Failed Us Because We Ignored Its Basic Precepts


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And harmful austerity measures suited the rich and powerful just fine.

Yes.

Slashing government spending and shredding the safety net was a popular tactic of certain powerful and moneyed interests who fully exploited the opportunity to scare people into their way of thinking. And they found their willing economists to back them up. More Krugman:

And such people have been aided and abetted by what I’ve come to think of as the trahison des nerds — the willingness of some economists to come up with analyses that tell powerful people what they want to hear, whether it’s that slashing government spending is actually expansionary, because of confidence, or that  government debt somehow has dire effects on economic growth even if interest rates stay low. 

Deplorable and despicable, and all the more so because so many have suffered for so long, needlessly.

Read the rest of Krugman's column here

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