Paul Krugman warns of fiscal time bomb if relief is insufficient - Business Insider

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Nobel Prize-winning economist Paul Krugman says we are ignoring a 'huge fiscal time bomb' set to detonate when the pandemic subsides

Krugman says we have a "huge fiscal time bomb" that is not getting enough media coverage. He says that just as the economy is ready to recover there will be mass layoffs of government employees and a cutoff of unemployment benefits, unless there's another major round of legislation.

The denial, virus denial, which is basically the same as climate denial has been critical. I mean tens of thousands of people will die unnecessarily in this country because of it.

Just a flat out check of $1,200, that's good. They're making it more difficult. It should be going automatically to people whether or not they filed tax returns as long as they're in the record someplace. So they're making it harder to get. Getting enough demand to restore full employment may be a challenge. We may really... the White House has been talking about for the 17th time, they're talking about infrastructure, but maybe after this we really should talk about how the economy really needs a big infrastructure push. Partly because we need the infrastructure, but also to ensure full employment.You shared a chart showing that during the 1919 influenza pandemic, the stock market actually rose.

I think that's the way to think about it. If you thinking that this is just a replay of 2008, you're missing probably the bigger part of the story, but there are pieces. Part of this is like a replay of 2008 and that's what we need. That part should be avoidable if we act forcefully enough, which we haven't so far.Yeah. There's not enough money. The unemployment benefits, that's a big deal. The small business lending, that's a pretty big deal.

 

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hblodget I understand the problem of unemployment benefits being cut off, but I don’t get why there will be mass layoffs. paulkrugman can you help?

Who cares what the political hack thinks? This guy is always wrong.

Are we winning yet? Yes, we have the most cases in the world.

rozmcdermott Yes, PaulKrugman was ignoring that huge capitalist crisis so much he gleefully participated in mugging the only Keynesian in the Presidential campaign capable of addressing it, because calling oneself a democratic socialist is too 'ostentatious' for Nobel Prize Paul.

if he's an economist I'm an astrophysicist. guy is a total dimwit

God has he ever been right?

Ignoring?

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