Nobel Prize winning economist Paul Krugman warned Sunday that proposed spending cuts in a deal to raise the nation’s debt ceiling would end up hurting the economy.
“From the perspective of a rational person, we shouldn’t even be talking about spending cuts at all now,” Krugman told ABC’s Christiane Amanpour. “We have nine percent unemployment. These spending cuts are going to worsen unemployment… If you have a situation in which you are permanently going to raise the unemployment rate — which is what this is going to do — that’s actually going to reduce future revenues.”
“These spending cuts are even going to hurt the long-run fiscal position, let alone cause lots of misery. Then on top of that, we’ve got these budget cuts, which are entirely — basically the Republicans [saying], ‘We’ll blow up the world economy unless you give us exactly what we want’ and the president said, ‘Okay.’ That’s what happened.”
“We used to talk about the Japanese and their lost decade. We’re going to look to them as a role model. They did better than we’re doing,” he added. “There is no light at the end of this tunnel. We’re having a debate in Washington which is all about, ‘Gee, we’re going to make this economy worse, but are we going to make it worse on 90 percent the Republicans’ terms or 100 percent the Republicans’ terms?’ The answer is 100 percent.”
Watch this video from the ABC’s This Week, broadcast July 31, 2011.
Veteran Republican operative shames the GOP — and warns they won’t get rid of Trumpism ‘for at least a generation’
Stuart Stevens is a veteran Republican campaign operative from five presidential races. When he spoke to PBS's Judy Woodruff Wednesday, he lamented the GOP failed the moral test it was presented with Donald Trump.
"Well, I think there's been two strains in the party. Call it an Eisenhower strain going back to the '50s and a McCarthy strain," Stevens said, recalling when the GOP would talk about expanding their party and bringing in more African-American voters. "Now we don't even hear any talk anymore of a big tent. And we seem to have settled into a very comfortable white grievance identity."
Seth Meyers mocks Trump’s Axios interview where he ‘couldn’t even remember his own BS — that’s how fried his brain is’
In his response to President Donald Trump's bizarre interview with Axios reporter Jonathan Swan, "Late Night" comedian Seth Meyers explained the Trump interview in a single photo:
"You know something has gone horribly wrong when a journalist interviewing the president looks like that," said Meyers. "That's the face you make when your dad gets drunk and decides to tell you about the night you were conceived."
Former Trump ambassador tells Rachel Maddow ‘it’s a big red flag’ that Trump is trying to hide investigation of Turnberry scam
Former acting ambassador to the U.K., Lewis Lukens, told MSNBC's Rachel Maddow that the inspector general raised questions to him and embassy staff in the U.K. about President Donald Trump's demand for the ambassador to lobby for the British Open to be hosted at Trump's golf course in Scotland.
According to Lukens, he told those questioning how to go about getting the British Open at Trump Turnberry, and Lukens said he was clear that it was "unethical" and "possibly illegal." Still, Trump's cronies persisted.
He explained that when the inspector general did the investigation they went back to Washington to write up the report and that it should have been released by now, but it obviously has not. Today, the acting IG, who took over just three months ago, abruptly resigned.