Uncle Sol Starting a thought farm

The New York Times and Willful Blindness

In an editorial piece today, the New York Times warns readers about getting into too much of a tizzy about deficits.

The Obama administration has warned that the new austerity drive could undercut economic recovery and has pressed the case that stronger countries, such as Germany, should not slam on the brakes. In a letter to G-20 colleagues, Treasury Secretary Timothy Geithner warned that budget cutting won’t work “unless we are able to strengthen confidence in the global recovery.”

What the New York Times needs to get is that Keynsian economics has failed. There is no recovery. The so-called stimulus has done nothing but prolong and deepen the economic pain our modern economy is only beginning to realize. We're replacing demand with debt. Debt that will have to be repaid. Debt that caused the problem in the first place. You can't solve a problem caused by debt with more debt.

The longer we cling to this pipe dream of recovery and the efficacy of stimulus, the longer and deeper this crisis will be. The New York Times is willfully blind to economic reality. They show their hand when they state, "nearly 1 in 10 are out of work," using the rosiest unemployment statistic around, which ignores those who have fallen off the unemployment rolls, stopped looking for work or accepted part time work in lieu of badly needed full time work.

The New York Times wants us to believe that it will all be better if we just stick to the plan. Follow their advice to all of our peril.

Share on Facebook