Friday, July 11, 2014

Why Convservatives Don't Want to Help the Economy

Just leave it to the markets. They're always right, right?

Paul Krugman pointed out the obvious in today's column:
Who are these always-wrong, never-in-doubt critics [of expansionary monetary policy]? With no exceptions I can think of, they come from the right side of the political spectrum. But why should right-wing sentiments go hand in hand with inflation paranoia? One answer is that using monetary policy to fight slumps is a form of government activism. And conservatives don’t want to legitimize the notion that government action can ever have positive effects, because once you start down that path you might end up endorsing things like government-guaranteed health insurance.
He goes on to point out that, additionally, the wealthy elite benefit from higher interest rates -- which drive up unemployment -- because they derive more of their income from interest income.

But his main point is that conservatives don't want economic success for America if it demonstrates what government can do to help its citizens. After all, that's socialism! Isn't it?

Well, no, that's sensible government action when needed. You'd think we'd all want that, but you'd be wrong.

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