In Which I Buck Up Paul Krugman

Paul Krugman is in Europe beating his head against the intellectual walls put up by German deficit hawks:

Suddenly, creating jobs is out, inflicting pain is in. Condemning deficits and refusing to help a still-struggling economy has become the new fashion everywhere, including the United States, where 52 senators voted against extending aid to the unemployed despite the highest rate of long-term joblessness since the 1930s.

...

Here’s roughly how the typical conversation goes (this is based both on my own experience and that of other American economists):

German hawk: “We must cut deficits immediately, because we have to deal with the fiscal burden of an aging population.”

Ugly American: “But that doesn’t make sense. Even if you manage to save 80 billion euros — which you won’t, because the budget cuts will hurt your economy and reduce revenues — the interest payments on that much debt would be less than a tenth of a percent of your G.D.P. So the austerity you’re pursuing will threaten economic recovery while doing next to nothing to improve your long-run budget position.”

German hawk: “I won’t try to argue the arithmetic. You have to take into account the market reaction.”

Ugly American: “But how do you know how the market will react? And anyway, why should the market be moved by policies that have almost no impact on the long-run fiscal position?”

German hawk: “You just don’t understand our situation.”

First of all, he is looking for logic.  But let me toss out two related thoughts:

First, we are seeing the failure of "Trust Us" governance:  The fiscal stimulus plans on offer in Europe and the US amount to the following - the governments intend to embark on massive, unsustainable spending on projects that would never be approved in a normal environment.  This spending will be maintained until the political winds shift, the economy recovers, or (in the case of public sector unions) forever.

And "later", this spending will be paid for by a hodge-podge of spending cuts and tax increases which will be guided more by political influence than economic logic.

And in response to this good news and firm leadership, businesses and consumers are meant to experience new confidence and commence hiring and spending.  Uh huh.

Second, not that I favor wars in general or WWII in particular, but viewed (coldbloodedly) as a fiscal stimulus program, WWII had an important feature - the spending was linked to a specific rule (the defeat of the Axis) which could be relatively easily monitored by the public.  In 1941, the public knew the spending would go on for years; by July 1944, the end of major combat operations was visible on the horizon.  People could plan accordingly.

I imagine that economists have mooted the merits of a fiscal stimulus rule (in addition to the automatic stabilizers) that would have a similar role to monetary rules.  Burt I also notice that we have never formally adopted any monetary rules.  People still sorta kind trust the independent Fed to manage our money supply (maybe!) but I sense a loss of confidence in Congress and the Executive. 

We don't want a big war and we don't have a fiscal rule, so it is hard for anyone to plan with any confidence for a future which will include an unpredictable spending and taxation.  That may not mean the fiscal hawks are right, but it implies that any new stimulus will bring so little confidence as to be much less useful than past history would suggest.

ALTHOUGH I LACK A NOBEL PRIZE IN PSYCHOLOGY:  I guess Krugman's target audience laps this psycho-babble up, but honestly - this analysis of the deficit hawks is silly:

So the real motivations for their obsession with austerity lie somewhere else.

In America, many self-described deficit hawks are hypocrites, pure and simple: They’re eager to slash benefits for those in need, but their concerns about red ink vanish when it comes to tax breaks for the wealthy. Thus, Senator Ben Nelson, who sanctimoniously declared that we can’t afford $77 billion in aid to the unemployed, was instrumental in passing the first Bush tax cut, which cost a cool $1.3 trillion.

A lot of the Bush tax cuts in 2001 were not for the wealthy, and in the summer of 2001 we didn't have deficits as far as the eye could see, two wars and a recession (That we knew about!  The economy peaked in March 2001, we were told in November 2001).  Much later, we were told the recession ended in Nov 2001.)

Ben Nelson was also a player in the 2003 Bush tax cuts, but by then Republicans controlled the Senate so a Dem like Ben was just useful cover.

Comments

[Rich Berger]

It's almost as if the Times is written for nitwits.

[boris]

"but their concerns about red ink vanish when it comes to tax breaks for the wealthy"

That line is binkyfuster stupid.

As a taxpayer deficit hawk do I want to pay more in taxes to give to poor people or do I want to pay more in taxes to give to rich people?

Earth to PK ... none of my tax money is being given to rich people ... they just get to keep more of their own like I want to.

Morons who think that way are morons.

[Neo]

A lot of the Bush tax cuts in 2001 were not for the wealthy

Team Obama hasn't figured this out yet .. or they just don't care ... don't care, it is.

[Neo]

Krugman and his "ilk" just haven't figured out yet that there isn't enough revenue available if they ever expect to have the "private sector" recover, ever.
The alternative is to give the investor class a break and just stop spending money we don't have.
I know this is asking a lot since in the last 20 months of so, the "Enlighten Ones" in DC have gone way beyond spending what they have or expect to have and have advanced into the Twilight Zone of spending money they will never have.

[ROA]

Hypocritical deficit hawks want to slash benefits for those in need such as the Mohegan Indians in Connecticut who operate a casino with $1.3 billion in revenues last year and whose members receive almost $30,000 every year in profit sharing payments.

LUN

[Ignatz]

--And "later", this spending will be paid for by a hodge-podge of spending cuts and tax increases which will be guided more by political influence than economic logic.--

Is there any actual evidence spending cuts will occur?
Only if it involves slashing the defenses of the country.

[Danube of Thought]

They really think an economy is pretty much like a steam propulsion plant. The government wanders about from platform to platform with its clipboard, reading meters, dials and gauges, and then adjusts a few valves here and there, changes a couple of burner sizes, and the thing will run right again. It's just a matter of asking Paul Krugman et al. which valves to adjust, and in which direction. Trust him; he knows.

[Ignatz]

Krugman is half right, accidentally. Slashing spending while increasing taxes will result in a stagnating economy.
The detested Warren G Harding showed us the way in the early 20's by slashing both simultaneously and lifting us out of the post WWI depression within 18 months.

[alanstorm]

"Suddenly, creating jobs is out, inflicting pain is in. Condemning deficits and refusing to help a still-struggling economy has become the new fashion everywhere, including the United States, where 52 senators voted against extending aid to the unemployed despite the highest rate of long-term joblessness since the 1930s."

So according to Mr. Nobel-prize-winner, extending unemployment benefits = creating jobs?

I guess I'm just not Nobel-caliber material, 'cause that sounds mind-numbingly stupid to me.

[Alan Gunn]

Krugman, having scored very high on the "deficits are bad when one party does them, good when the other does" scale, is not in a position to criticize others for hypocrisy.
See http://subspecie.edman.ws/2010/05/paul-krugman-may-be-biased.html

[I need a new trust buster.]

Keynes? That quaint old 20th Century philosopher? Or was he a political scientist?
==========

[DebinNC]

Left Wing Ambush Gone Wrong LOL

[angela merkel]

Herr Krugman, hmmm, zat is a cherman name, yes? Zen vy are you such an eediot?

You komm here to ze land of Von Mises und Popper und Hayek und ze Bundesfinanzminesterium zat has been managed unser ekonomi korrectly und you give us zis kwatsch!!!

Raus mit dir, du dummkopk!!!!

[Donald]

Completely off topic, and it's just hitting my now, but where would be the one place that the really cool, really sophisticated JOM'er go if they had a few days to play with in New York City?

Sincerely,

Mr. Personality

[Donald]

Hitting me now...

[Danube of Thought]

Unexpected:

California added 28,300 jobs to its payrolls in May, but many were temporary government jobs, adding to fears that the economic recovery will be even more sluggish than originally anticipated.The state added 30,000 federal government jobs in the month, according to the Employment Development Department. Many of them were census jobs.

[Third Avenue Ragamuffin Parade.]

Brooklyn Museum, Japanese Garden and surrounding Park.
=====================

[Atlantic Avenue.]

Junior's.
=====

[Janet]

OMG! I'm watching Kenneth Feinburg on PBS & he looks/sounds ridiculous. Managing 20 BILLION dollars....this will be a circus. Sounded like a salesman...plan what sickness YOU plan on complaining about, and step right up for some cash. If I need more cash, I'll get it from BP.
What is this lawlessness?

[Coney Island Ferry, the Cloisters, and in between.]

There's a coupla spots on that other island over the bridge.
============================

[glasater]

The other day Art Laffer admitted the Reagan administration should have cut taxes earlier than they did.

[PD]

This is Paul Krugman, former Enron advisor, yes?

[Oh, wait, sophisticated. Hmmmm. I'll pass.]

er, the Staten Island Ferry. It's the Coney Island VA.
============================

[DebinNC]

Mark Knoller (CBS) on BO's OH photo op today:

Mr. Obama spoke for just ten minutes and was on the ground in Ohio for just over an hour. And though his appearance was billed as official and not political, he did use his remarks to deliver attaboys to some of the Democratic politicians here including the Governor, who is up for re-election.
"You also got one of the best governors in the country in Ted Strickland," the president said at the start of his remarks.
Strickland faces a challenge for his job in November from former GOP Congressman John Kasich, who was not at the Recovery Act event. Neither was Boehner. The trip Columbus probably cost taxpayers between $500,000 and $1 million.

[Donald]

I"m currently reading a book about the history of Vaudeville. Coney Island is on the list! Also a baseball umpire buddy recommended Juniors. Awesome.

[BobDenver]

Love the Cloisters. Simon claimed to have written many Simon and Garfunkel tunes there, but that's no reason to avoid it.

[jimmyk]

Riverside Park on a nice summer evening near the 79th Street Boat Basin. There's a bar/restaurant that serves burgers etc., and throngs of people out biking, running, boat-watching.

[Clarice]

Go to MOMA and stay for lunch--Have tea at the Algonquin Hotel in the late afternoon...

[Clarice]

Have lunch in Brooklyn at the river Cafe.

[Donald]

My wife has a new fancy dress. The Alongquin is in! donald drinking tea. And I suppose biscuits. Shudder. Thanks!

I'm also getting a lot of encouragement to go to Brooklyn by a buddy. Never thought about it, but I gotta get the waterfront in. Apparently it's hip. Like me. Not like Obama.

[Donald]

I don't have to wear socks do I?

[Donald]

Cause I hate socks.

[jimmyk]

This is how people like Krugman lie with statistics. Let's say there's a tax cut in which someone making $500,000/year (and paying, say, $150,000 in taxes) gets his taxes reduced by $1000, and someone making $40,000/year (and paying $5,000 in taxes, including S.S.) gets a reduction of $500. According to Krugman, that's bigger cut for the high income guy, even though (1) the high income guy is now paying a bigger share of federal revenue; (2) on a percent basis the cut is much larger for the low-income guy; (3) if it were reversed, Krugman would switch over to percentages and say that it's a bigger increase on the low-income guy.

[hit and run]

My entire NYC experience consists of four hours on the tarmac at JFK in July with the A/C on the plane turned off,waiting for a storm to pass so we could take off for Denver.

I would not suggest four hours on the tarmac at JFK.

Glad I could be of service.

[Clarice]

Donald, I haven't been there in a while but the River Cafe was one of the very best restaurants in America..and the view is lovely. It's really just across the bridge and not hard to get to.

[Andrew_M_Garland]

Maguire: "viewed (coldbloodedly) as a fiscal stimulus program, WWII had an important feature"

"World War II spending ended the depression" is a huge myth serving politicians who love big government.

Dollars are not magic fairies spreading wealth wherever they sprinkle their dust. Dollars only arrange an exchange between people having something to trade. First, a worker trades his personal production for dollars, then he trades the dollars for food. The interconnection of a free market economy delivers goods to the farmer in exchange for the food he grows.

Our government is borrowing money to "stimulate the economy" by spending it to buy projects like road repair. Roads are useful, but less useful than the other things that would be built by the private citizens who are lending their resources to the government. And, government is wasteful, distributing a lot of resources for little project result.

Why aren't private citizens expanding business and creating jobs? Because the government is threatening them with regulation and taxes to pay for the "stimulus" it is borrowing. Businessmen worry about the future, about who will buy things from them after they produce them. Government threat and action is making this impossible to predict, so there is little private investment. Unfortunately, government "stimulus" is an extremely poor, laughable attempted substitute.

- -
FDR's Policies Prolonged the Depression (And Obama's policies will too.)

"The Depression dragged on for years, convincing generations of economists and policy-makers that capitalism could not be trusted to recover from depressions. They decided that government intervention was required. Ironically, we show that the recovery would have been very rapid had the government not intervened."

- -
Government Spending Divides, It Does Not Multiply

Robert J. Barro is an economics professor at Harvard. He found that spending in World War II decreased GDP by 20% (a multiplier of 0.8). Government spending actually killed GDP, even assuming that the spending itself was useful.

Quip: If you think WW2 ended the Great Depression in the U.S., then we can carry out the same enlightened policies without needing a war. Conscript most of the able bodied men and have them build tanks. Then destroy the tanks. Impose rationing for good measure. At the end, everyone is supposed to be rich.

Actually, this isn't so funny. Keynesian economics recommends to do just that. And Obama and many in congress are Keynesian in their thinking, because they like the recommendation that the government should tax a lot of money and spend it on signs saying "Brought to You by a Caring Government".

Quip: Some people think that WW2 benefitted Europe because they were relieved of the burden of having old factories. They were bombed out, and so could build new, efficient factories. If you believe that, then they could bomb their own factories, or we could bomb ours, and experience the same boost in wealth.

[matt]

great cheesecake at Juniors. Used to get very busy @ 2:00am way back in the day. John's pizza on Bleeker. The Cloisters if you like the medieval.Never very busy and sort of reverential. Neue Galerie for German Expressionist art & Wiener Werkstatt. The Met is just stunning in the utter quality of just about every department. The International Photography Institute on 6th Ave. if they have a good exhibit. They just obtained a huge trove of Robert Capa's work.A ton of world class galleries on 57th St, but they're all in high rises, and it's summer now. Maybe some good exhibits if you scour the art listings. Gramercy Park if you can sneak in. Go to Dean & DeLuca in the Village and put together a picnic and find an empty bench in Washington Square. The people watching is incredible. Battery Park on a warm summer evening. The Promenade on the Brooklyn side.

There used to be some incredible inexpensive Indian places on E. 17th., but they're scattered all over Manhattan now. As to food, the sky's the limit. I have the wine list from Babbo in the Village on my hard drive just because it's so incredible.

[Old Lurker]

I second MOMA.

Drinks at the bar of the Mandarin Oriental (35th floor). Say hi for me.

The Apple store beside FAO Schwartz.

[Ranger]

BTW, totaly off topic, but for those who like polls:

http://corner.nationalreview.com/post/?q=N2YwMjBlNmE3ODFhNTVkYjIzNTRlMzIyOWQzMTBlOGY=>Gallup: Majority Does Not Believe Obama Deserves Reelection

The poll also marks the first time a clear majority opposes reelection for the president

[BobDenver]

The Limbaugh Wing of the Museum of Broadcasting should be open by now.

[Stephanie]

Remember the school board super from Detroit who couldn't spell?

He's back in the news. I guess it's hard to type with one hand on your joystick.

LUN

[Danube of Thought]

The other day Art Laffer admitted the Reagan administration should have cut taxes earlier than they did.

I saw him talking about the Reagan cuts, and as I recall he said that in order to get them through the Dem congress he had to agree that they wouldn't kick in until January 1, 1983. And from that day forward unemployment dropped and the boom began.

[Stephanie]

I heard that talk the other day, too. Boortz and Limbaugh were all over it this week.

BTW, Keith Hennessey has some experience with the Jones Act and some recommendations for the O-krue in Louisiana in the

LUN

[LouP]

The whole Krugman piece seems to me to have no objective other than to supply the Left with their next talking points for the state of the economy. It doesn't do any good to reason with them with facts, or logic; they don't want to hear it. They now have what they want/need: something that sounds "intelligent" to them that counters the perceived shift of the electorate to some kind of fiscal responsibility.

[Jane says obamasucks]

Hypocritical deficit hawks want to slash benefits for those in need such as the Mohegan Indians in Connecticut who operate a casino with $1.3 billion in revenues last year and whose members receive almost $30,000 every year in profit sharing payments.

Here is what is interesting to me. Foxwoods, about 10 minutes from Mohegan Sun is nearly bankrupt - because it pays all it's tribe member about $250k a year (I made up that figure but I recall it being many multiples of the MS figure.) So why Mohegan? What's in it for Dodd? Foxwoods clearly needed the money more.

Secondly, the casinos pay no taxes because they have an exemption for being indians, and the casinos are considered foreign territories, so just how is this stimulus?

[Janet]

NYC? My experience is more like Hits...lost in the city on our way home from camping/fishing in Maine. Poles stickin out the windows, camping gear strapped to the roof...we might as well have had "Kill us, we're stupid" painted on the windows.
So don't take too many fishing poles with you is my only advice.

[Clarice]

Oh, I heartily recommend the Cloisters, too. The Met is fantastic but can be overwhelming..Pick which exhibit(s) you want to see.

[matt]

a college friend of mine's son works in that Apple store. It is apparently one of the "coolest" jobs in the city.

It is cult central for Steve Jobs' bolt together marketing vehicles....

[CSW]

the interest payments on that much debt would be less than a tenth of a percent of your G.D.P. So the austerity you’re pursuing will threaten economic recovery

You forgot O wants a percentage of your GDP his bill. He also wants to keep on giving away hundreds of billions in foreign aid without China valuing the DD cash. He's going to Toronto and everyone is worried he's going to plan something again and demand a fund and dividends.

[Charlie (Colorado)]

New York:

* Central park
* Theater in Central Park
* Sam's Deli on 3rd Avenue
* Katz's, way downtown
* Trinity Church in the Financial District, or and visit the Bull
* MOMA
* Museum of Natural History
* Guggenheim
* Times Square, although Giuliani kinda spoiled it
* the Strand bookstore

Plus, you can have a fascinating day in the city by just starting walking and looking.

[glasater]

The other day Art Laffer admitted the Reagan administration should have cut taxes earlier than they did.

I saw him talking about the Reagan cuts, and as I recall he said that in order to get them through the Dem congress he had to agree that they wouldn't kick in until January 1, 1983. And from that day forward unemployment dropped and the boom began.

That's right DoT and Stephanie and shouldn't have used the shortcut.

But doesn't it point to the cynicism of the left in that they made the tax cuts wait until that date?

[Yet Another Lurker]

Donald --

Read every entry on this blog and you'll be in good shape.

[peter]

Yet another, great link. I walk in those neighborhoods all the time.

[daddy]

More bad news from Obama for the economy in general and Alaska in particular:

">http://liveshots.blogs.foxnews.com/2010/06/18/arctic-drilling-suspended/"> Arctic Drilling Suspended.

"The Obama Administration has done an about face on drilling for oil in the Arctic Ocean. Just days after its Justice Department defended Shell Oil's plan to drill five exploratory wells in the Chukchi and Beaufort Seas off the coast of Alaska, the Interior Department suspended the operation."

"Shell has paid $3.5 billion for more than 400 leases in the Chukchi and Beaufort Seas," and got not a drop of oil in return.

"Shell's summer drilling would have meant 400 jobs and full production could have added 35,000 jobs over the long term."

[hit and run]

OK,I just have to say it.

DebinNC,you bring such wonderfully wonderful links and info. Stuff that isn't just the "I saw this on HotAir (or the Corner,Instapundit,etc)" suff.

Stuff I may not see otherwise -- or may not see until days later othersise.

It's so greatly appreciated.

You are greatly appreciated.

[PD]

John's pizza on Bleeker.

But watch out for Doctor Strange.

[qrstuv]

Assuming (fairly safely) that "budget" refers to government spending, why does the Ugly American say "the budget cuts will hurt your economy and reduce revenues"?

Does Krugman not understand that there is an opposing point of view, one that is actually supported by facts?

/why waste my breath

[daddy]

How come to Krugman the American talking sense is "Ugly"?

Hit,

Agree completley with you about Deb in NC's Links---that one up above of Alan Simpson getting back at the gotcha journalist is great.

First Spaghettio's, now ">http://www.thestate.com/2010/06/18/1338831/beer-truck-crashes-in-chester.html"> this calamity!

[Ann]

DebinNC:

I agree with hit (what is new?). You were missed and I am glad to see you back.

Greatly Appreciated Dittos!

[matt]

that is a national tragedy daddy.....MSM keeping the truth from the masses of Obama's secret plan to stick it to the middle aged white male population..

In the meantime, Her Doublewideness and the kids were out here shutting traffic down at Disneyland....

[hit and run]

Daddy:
First Spaghettio's, now this calamity!

Oh daddy, (that sounds homoerotic),that story is worthy of rending of garments and a wearing of sackcloth and ashes on the head.

Beer truck crashes in Chester County; no bottles survived

Well,it was headed southbound on I-77,away from NC,so ... I'm upgrading from Calamity to man-caused disaster.

But this much is clear: that beer truck driver (unlike my brother in his heyday) certainly did not carry himself with the poise and confidnece of.....etc.

[narciso]

"Oh the humanity" is the expression, I think you're looking for, that was Winchell on the Hindenburg, but Beck uses it in the hourly leadins

[daddy]

Matt,

Knowing you guys just did the McKinley Flight Tour, this might be of interest.

The EPA is proposing banning 100LL (100 Low Lead) Aviation fuel, essential to piston driven General Aviation airplanes. About a third of the nations general aviation planes (@56,000) require 100LL for particulars of safety and efficiency for their engine valves etc.

The EPA wants to ban it due to something like 2 parts per million of lead, then mandate the FAA set the new certification standards. This would severely cripple piston driven GA airplanes, and especially, since that is the type of plane that does all the tough hauling to outlying sites in Alaska, it would clobber us up here severely.

If anyone's interested, this ">http://avgasforak.blogspot.com/"> link has 3 small 4 minute video interviews of Piston Airline guys in Alaska, laying out what banning 100LL is going to do to their businesses and the States economy, especially since so much of our State's isolated populations lack roads or other methods of getting in supplies. Of National interest is that much of this drilling equipment hauled up to these outlying drill sites has to come up via these Piston Cargo-haulers.

I don't even think the last person to leave Alaska is going to have to shut off the lights, because they'll all be long out of power before the Obama Admin and the EPA get through with their Eco-dictates.

[Ann]

No wonder they want to shut down the internet:

The Democrat Race Lie

Can't have the truth to power thing going on can we?

Just an idea, but if Obama did shut down the internet, what is our plan? Maybe, we should give all our phone numbers to hit and he can coordinate where we meet with our arms and pitchforks. We need a great cook, easy access to the Capitol, an excellent attorney, and the courage to lead us to victory. hmmmm

Daddy, I think Obama has a vendetta out on republican governors and Sara Palin.

[daddy]

Wow Ann,

A very informative list of bullet points in your link. Thanks for that.

And from his actions I think you are correct that he sees a target on the backs of Conservatives nationwide.

[flodigarry]

I hesitate to even venture into Ann's domain, but really, Madame Tussaud's wax dummies appear more lifelike.

Check out the video in LUN

[flodigarry]

the Hillary video...

[narciso]

Hillary does look so lifelike

[ROA]

Why are you surprised Alaska is being punished? They voted for McCain in 2008, Sarah Palin is from there, one Senator and its Representative are Republicans. Don’t be surprised if more

[ROA]

detrimental regulations are imposed in the future.

[Stephanie]

I originally read that as "deranged regulations."

[Rick Ballard]

Andrew Garland,

Thank you for bring Barro into the thread. He has said from the beginning that the pseudo Keynesian policies promulgated by Krugman and pursued by the Democrat Clown Posse under BOzo's direction were going to fail and he appears to be absolutely correct.

TM mentions the fact that absolutely nothing done to date by this maladministration has generated anything resembling confidence and, had Krugman a brain rather than an endless "spend more" loop, he might have noticed that the Germans have no more confidence in BOzo's competence than does the growing majority of Americans.

The Germans also know that the OPM well has run dry world wide and they seem somewhat less willing to immiserate the next generation in order to purchase votes (and pay for My Big Fat Greek, Spanish, Italian and Portuguese Bailout) than do the Democrats.

I really believe I can see November from here - it should be a great Thanksgiving.

[Ann]

daddy,

If you have a few minutes, watch this: No Guns for Negroes Part One and Two

I think I am going to join glennbeck.com just to be able to copy and paste his research. He is teaching history and no one is paying attention because they think he is a crackpot like RUSH. His delivery is not as good but his heart is in the same place and we should not ignore it because the media tells us to.

He is as annoying as Hannity yet compelling in these dreadful sleepless nights.

[Dissertation Writing]

Nice blog and excellent post i really appreciate on hard work.I like to do commenting here..

[Ann]

Oh, and don't miss Senator Dodd's fathers involvement. The whole family sucks just like the Gores.

The title "Inconvenient Truth" spans the whole family history of the Gore family, right up to his divorce, IMO.

Niters!

[Andrew_M_Garland]

To Rick Ballard, thanks for the shout out.
- -
To Ann,
Not just gun laws. Minimum wage legislation started as a way to discriminate.

The minimum wage has many bad effects. It supresses hiring teens for entry level jobs, and reduces employment in general.

Minimum wage legislation did not arise from a noble effort to help the poor. Senator and future President John F. Kennedy of Massachusetts spoke at a Senate hearing for the minimum wage: "Having on the market a rather large source of cheap labor [hundreds of thousands of black workers] depresses wages outside of that group, the wages of the white worker who has to compete."

The government cannot help people by restricting their choices.

Minimum Wage Prosperity: Using the Minimum Wage to Hamper Your Rivals

[ROA]

Stephanie - A lot of them do seem deranged.

[daddy]

I chuckled when I saw this headline in Today's International Herald Tribune, (a NYTimes product) about Obama's questionable Presidential maneuvers:

"Obama Tests Outer Limits Of Executive Authority."

Why just an administration ago I would have thought they would have printed something like:

"Bush Shreds the Constitution", or
"Bush Tramples Civil Liberties" etc.

Guess I'm mis-remembering.

[Jane says obamasucks]

Just an idea, but if Obama did shut down the internet, what is our plan?

I've been thinking of that too, because I would put nothing by him. I assume someone has an alternate all worked up, but how do we find it and get access?

[Jim Miller]

Donald - Any red-blooded American boy will want to visit the American Museum of Natural History -- if only to pose with their T. Rex.

If you do visit the Museum of Modern Art, I suggest bringing along Tom Wolfe's "The Painted Word" as a guide.

Other than that, it is hard to know what else to recommend, without knowing more about your tastes and the weather.

[Neo]

Greenspan Says U.S. May Soon Reach Borrowing Limit

Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a “tectonic shift” in fiscal policy to contain borrowing.

[Neo]

Just an idea, but if Obama did shut down the internet, what is our plan?

Kep in mind that VoIP services will be down as well, so many people's phones (who use Comcast, SKYPE, etc.) won't work either.

[Melinda Romanoff]

Neo-

Call me a cold war relic, but it's one reason I still have land lines and at least one, old school, rotary telephone. Civil Defense regs required the phone system to be self-powered and "hardened", and the mechanical rotary switches are still in place, and are still maintained.

Anybody else have to feed the dog every morning? (Go read it, it's Mr. Barone.)

[centralcal]

Mel: About the phones - me too. I remember during the Hurricane Katrina flooding days, when no telephones were working according to the media, they found and rescued this old woman, who had been able to maintain communications with friends and relatives because she still had an old rotary phone.

I keep one stored in my linen closet, for just that reason.

[MayBee]

Donald- my husband and son came home crying over the wonderfulness of their dinner at Mario Batali's restaurant Esca. It specializes in Southern Italian dishes and has the most amazing crudo.

[Clarice]

We could all practice using short wave radios and morse code.

[Danube of Thought]

Minus 20 at Raz today.

[Danube of Thought]

But Mel--who you gonna call?

[Extraneus]

Donald, if you're still reading, I'd recommend a bus tour. On a sunny June day, sitting on top of one of the open-air double-decker buses, it's a nice way to see a lot of the city in 2-3 hours. Uptown, downtown, Empire State Building, Brooklyn Bridge, Derek Jeter's apartment, etc. During a tour like that you can get a feel for which areas you might want to check out further, and even get off and catch another bus later if any of the stops look interesting. You can spend a whole day doing this.

(Sit on the left side, or prepare to deal with branches in your face.)

Here's one of them, but there are plenty of others.

[Danube of Thought]

Jeez--man bites dog!

WASHINGTON — Recent African American and Latino home borrowers — regardless of their income — were much more likely to lose their homes to foreclosure than non-Hispanic whites during the ongoing housing crisis, according to a new study.

[hit and run]

I'll see your man bites dog . . . and raise you a http://news.yahoo.com/s/nm/20100615/od_nm/us_germany_puppy>puppy thrown at bikers:

BERLIN (Reuters) – A German student created a major traffic jam in Bavaria after making a rude gesture at a group of Hell's Angels motorcycle gang members, hurling a puppy at them and then escaping on a stolen bulldozer.

That may be the funniest opening sentence from a straight news story I've ever read.

I'm gonna go out on a limb here . . . and guess that alchohol was involved.

[Captain Hate]

"You also got one of the best governors in the country in Ted Strickland," the president said at the start of his remarks.

What disingenuous POS both of them are. I'd like to know one good thing Ted the Twitch did in the last 4 years, because his campaign ads don't seem to realize he's been in office during that time and ostensibly has a record to run on.

[Danube of Thought]

Approaching convergence:

The latest Rasmussen Reports national telephone survey of Likely U.S. Voters shows that 47% still blame today’s economic problems on the recession that began during the presidency of George W. Bush. But now 45% say they're due to the policies of President Obama.

Both numbers have shifted only slightly from last month, but the number who blame Bush is down from 62% last May when Rasmussen Reports first began tracking the question regularly. It's also at the lowest level measured yet.

The percentage who blame the current problems on Obama’s policies is up from 27% last May and is at the highest level measured to date.

[DebinNC]

Thanks so much, Hit and Ann

Clarice, are you readying a new Piece? If we knew the topic, maybe we could offer ideas/examples.

[Danube of Thought]

Underwater at RCP:

President Obama Job Approval
RCP Average

Approve
47.7%

Disapprove
48.0%

[DebinNC]

Recent African American and Latino home borrowers — regardless of their income — were much more likely to lose their homes to foreclosure than non-Hispanic whites during the ongoing housing crisis

"Recent" meaning since Obama became POTUS? Is there some reverse racism in lending now, where whites must meet more stringent standards than non-whites?

[Clarice]

Thanks, Deb. I already sent it in. It's due up tomorrow morning--it's about Clyburn, Tavis Smiley, the Hundai soccer ad and the mrder of soccer fans in Somalia.

[Clarice]

**Hyundai**

[DebinNC]

That sounds like a Jeopardy answer, but I have no idea of the question. I look forward to reading it, Clarice.

[glasater]

White House Construction Leaves Visitors in a Maze of Fences

Major Garrett and Wendell Gohler at Foxnews were reporting the other day that the construction was for laying fiber optics in between the WH and the Executive Office building.
Can't get the Fox video to load but with my tinfoil hat on am wondering if the fiber optics work is laying the groundwork for keeping better tabs on the internet.