Wednesday, May 30, 2012

Krugman advises Irish to reject austerity pledges

This is BIG!  It is pretty easy to dismiss Krugman as this conservative turned liberal who hectors the neoliberals from his comfortable perch at the New York Times.  But this is different.  He is in a foreign country suggesting that the Irish essentially blow up the establishment consensus on economics.  Don't know if it will work, but you got to admire the man for trying.  Somehow, he must believe that the neoliberals who have utterly dominated the economics profession for over a generation have become the "rotten door" that only needs a good push to destroy.  Either that, or else his is a very brave man on the verge of becoming a martyr.  Mostly, I believe he understands the weakness of the opposition and is positioning himself to lead the way out of the neoliberal madness.

Paul Krugman Urges Irish Voters To Reject The Fiscal Pact Referendum

Christine Bohan, | 5.30.12

NOBEL PRIZE-WINNING ECONOMIST Paul Krugman has advised Irish voters to vote No in Thursday’s referendum on the Fiscal Compact.

“I’ve thought about it, it’s hard. I would say vote No,” he said on BBC Radio 4 this morning. Krugman dismissed the suggestion that a No vote would anger Germany and see Ireland cut off from bailout funds or from the Eurozone.

“At this point the Germans need to face the reality that this cannot work and that the Irish, who’ve been such good soldiers in this crisis, if even the Irish say no then that would actually send a helpful message,” he said.

Krugman said that austerity is a “deeply destructive policy” which is “failing dismally”. He blamed the vanity of politicians for pursuing a policy which he said is not working.

“The whole intellectual framework has been tested to destruction in the Eurozone,” he said on the Today programme on BBC Radio 4 this morning.

Krugman said that the Eurozone was on the wrong track because it has a single currency without having a single government. “European currency union was a mistake since the day the Maastricht Treaty was signed,” he said.  more

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