Paul Krugman: Let’s Just Print More Money

Once again liberal economist and New York Times columnist Paul Krugman has said that our government trillions in debt is not a problem and even intimated that we might we crank up the printing presses and print more fiat money to get us out of our bad economy.

Krugman appeared on C-SPAN’s “Washington Journal” program on January 30 and scoffed at Rep. Paul Ryan’s (R, WS) claim that our country is on the verge of a debt crisis.

The C-SPAN host played a clip of comments made at last week’s National Review Summit by Rep. Paul Ryan where the former GOP VP candidate warned about economic collapse.

“We spend a trillion dollars more than we take in each year. We can’t keep that up. If we stay on this path, we will run the risk of a debt crisis. What is that? That’s a moment where our finances collapse, our economy stalls. We will have to convince the country to change course,” Ryan said.

Asked if we really are in danger of collapse, Krugman replied that, “Uh, no.”

“There’s a whole bunch of reasons why that’s not true. First of all… that trillion-dollar deficit is overwhelmingly the result of a depressed economy. And when the economy’s depressed it’s good to run a deficit. You don’t want the government to try and balance its budget right now.”

Krugman then noted that we print our money, so we can’t run out. “But also the United States is a country that has its own currency. Can’t run out of cash because we print the money,” he said.

“The story Ryan is trying to tell just doesn’t actually make sense,” Kurgman explained. “There are no historical counterparts to the story he claims we’re at risk of,” Krugman continued. and of course, Ryan himself desperately, desperately is concerned about the deficit but won’t accept one penny in additional revenue to deal with it. All he really wants is to cut spending.”

The segment discussed above is about five minutes in.

Here is Paul Ryan’s speech to the National Review Summit on January 27, 2013.

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  • Vagabond661

    The “I can’t be broke. I still have checks in my checkbook” argument.

  • GarandFan

    I like Krugman’s thinking! Next time I run short, I’ll just start running some $20’s off the printer! Just think of the money I’m “saving” the government by doing it myself!

  • Evil Otto

    “It’s almost worth the Great Depression to learn how little our big men know.”
    – Will Rogers

  • jim_m

    Krugman is mentally ill. By his logic we could just make everyone rich by printing the money and handing it out. In Krugman’s alternate universe where normal rules of economics and money supply don’t operate we could make everyone fabulously wealthy and there are no negatives to doing so.

    It really begs the question as to why he is not directly advocating such an action. His excuses for obama preclude the possibility that there is any downside.

    • Hank_M

      I couldn’t agree more. Krugmans remarks are just plain nuts.
      Sadly, the democrats all seem to agree with him, especially Barak, we have no spending problem, Obama.

  • JWH

    The problem with printing money is that if the Fed floods the market with dollars, the market will notice … and I suspect it would jack up the rates on government debt.

  • stan25

    This is why the United States MUST go back to the gold standard and abolish the Federal Reserve. It is idiots like Krugman that insisted that we abandon the gold standard in the first place. The idiot Richard Nixon agreed and financial chaos has ensued since. History has proven over and over that if your currency is not backed by something, it will soon collapse. Well again this has proven to be true.

  • Commander_Chico

    Someone said that the biggest entitlement program of all is printing money, and the benefit goes to the top 1% and screws the 99%

    Why? The way the Fed “prints money” is by “loaning” it to banks at zero interest. The banks then use it to lend to you on your credit card at 8 – 25%, buy commodities and bid up the price and generally make life more expensive.

    But hey, the Dow is back up there to pre-crash levels again.

    • herddog505

      Commander_Chico benefit goes to the top 1% and screws the 99%

      I agree with the statement, but not the particulars.

      The benefit of printing money goes to those living off the government teat: welfare queens, the big entities who get (or hope to get) government grants and contracts, and the handful of politicians who get reelected by the deadbeats after having their campaigns funded by the corporate leeches.

      However, the end result is the same: the rest of us get screwed.

      • Commander_Chico

        Yeah, the banks getting hundreds of billions in new money at zero percent interest benefits welfare queens, because they can borrow at the discount window. And I thought they were paying an effective 50% rate at Rent-A-Center.

        Getting to borrow money at zero percent and lending it out at any rate above that is a guaranteed way to make money. Not to mention speculating in commodities.

        The welfare queen is hurt by rises in prices, because benefits lag increases in the cost of living.

        You are confusing monetary policy and fiscal policy. This is not about government spending, it’s about “printing” money. Not literally printing, of course. When the government borrows, it pays more interest than the Fed charges its friendly bankers. That’s pretty sweet.

        • herddog505

          Let me try to rephrase:

          The government’s ability to print money at will benefits a small number of people: politicians who buy votes with that money (if you can print it at will, you can spend it at will) and the welfare queens, both of the food stamp and the corporate welfare variety, who get the money.

          The rest of us get screwed as we have to deal with always wondering whether, in order to slap a bandaid on the spurting artery, some politician will decide that we have to “pay our fair share”. We also have to deal with inflation. Finally, there’s the worry about what it will mean for our country (and, by extension, ourselves) in a few years when the bill comes due.

  • Jack Zimms

    Krugman is supposed to be economist? So much for experts. Just look at other Countries that try printing money anytime they need it. It destroyed their economy, made them laughingstock on world economy stage and made them third world countries.

  • retired.military

    The theory is that FDR prolonged and deepened the Great Depression.

    Here is a toast to BHO who has been proving this correct since 2009.

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  • w.jhon

    just before I looked at the paycheck
    ov $6338, I didn’t believe that my brothers friend was like they say actualy
    making money parttime from there computar.. there uncles cousin started doing
    this 4 only about twelve months and by now repayed the loans on their place and
    got themselves a Chrysler. I went here,