President Obama really needs to quit it with the timid act. It’s getting old. It’s getting tiresome. And it’s the exact reason why the 2008 platform of “Hope and Change” has come up empty.
Mitt Romney has no shot to win this election…absolutely no shot of being the next POTUS. But the Republican nominee could have even less of a shot, and, more importantly, Obama might actually be able to lets saaaay…..re-inspire “Hope and Change” and get more people to the voting booth on November 6th if he could muster up the courage to attack the conservative viewpoint on debt and deficits. Romney’s choice of Paul Ryan, a man obsessed with reducing the deficit, as his running mate provides the perfect opportunity for President Obama to just come out and tell it like it is…..the debt burden is not that important right now. This might seem like a radical statement to make but it’s true.
And here is why:
Back in 1946, our debt stood at approximately 120% of GDP. From 1946 to 1962 America’s debt as a percentage of GDP fell by 60% while the actual number remained relatively constant. How? The economy grew substantially, and the U.S. government continued to run balanced budgets. So why, in 2012, are politicians (Including Barrack Obama who has become brainwashed by conservative talk) so darn worried about reducing our debt, when, according to past history, what they should be doing is worrying about how to grow our economy. Remember the real measure of debt is not the actual number, but what it represents as a percentage of GDP. Think about what will happen if the government enacts radical spending cuts in order to attempt to reduce the debt. This directly reduces GDP, and we are already in a situation where private spending is down because of a bad economy. Consequently, the debt actually grows as percentage of GDP because of government spending cuts. According, to the IMF, this is not crazy talk. It could happen. Conservatives completely over hype the benefits we would get from cutting spending in a depressed economy. There no real justification for this obsession, and Obama needs to drive that point home to the American people.
I welcome discussion as long as it’s respectful and intelligent!!! 🙂
Krugman, Paul. End This Depression Now. New York : Melrose Road Partners, 2012. Print.