dogzilla

So I gather that what Paul is saying is that the reason unemployment is so high is because there's no demand and that the government should invent some demand by another stimulus.

So let's see. Over the past years, people have been borrowing money like mad to finance their lifestyles with money they didn't have. So credit card balances and home equity loan balances went sky high so people could have all these neat things.

And the economy went nuts. Factories were working overtime to satisfy the demand for all these nice things.

Then people discovered that they had to pay back all this money that they couldn't because they way overextended themselves. So now they couldn't get any more credit to buy nice things and the economy crashed.

So now people are beginning to realize that maxing out your credit limit and maintaining a negative savings rate wasn't such a bright idea. Between that and maxing out their credit, they stopped buying things. So now factories are sitting idle and people are laid off.

So Obama and his liberal buddies like Paul come up with this brilliant idea to create some phony demand by borrowing even more money, thinking that this phony demand will bring the economy back to life.

So Obama tried this at least twice, with cash for clunkers and a homebuyer credit. Both times, demand went crazy because Obama's programs borrowed against future sales.

Then the programs ended. So did the demand and we are back where we started, except now we owe the Chinese even more money.

Obama is an idiot. Paul Krugman is an idiot.

Fortunately, elections are happening in another month and a half. Then maybe Obama will get the message. If not, then Obama will be out of work too.