Paul Krugman: All money is government’s money


I have said many times in this blog that one of the more insidious mindsets out there right now is the notion that a tax cut is equivalent to giving people money. Except that the government doesn’t have any of its own money. It is all taxpayer money. When a tax cut is enacted, the government doesn’t give you money, you simply give less of your own to the government. That has not sunk in yet to Paul Krugman and those like him. From Keith Hennessey via memeorandumResponding to Dr. Krugman’s column on tax cuts for the rich. The post links to Krugman’s NYT piece, where among other things he wrote:

But these [Republicans] are eager to cut checks averaging $3 million each to the richest 120,000 people in the country. … And where would this $680 billion go?  Nearly all of it would go to the richest 1 percent of Americans, people with incomes of more than $500,000 a year. … How can this kind of giveaway be justified …?

Earth to Krugman – it’s their earned money, not yours and not the government’s…

The article, with graphs and video, continues at theblogprof.

Update from Verum Serum, “Paul Krugman and His Acolytes: Social Security is the Thinnest Girl at Fat Camp.”

Liberals are concerned about cuts to social security. So some are openly seeking better talking points to defend the program (they should start a list serv or something). In fact, a chain of concerned lefties led me to Krugman’s post on this topic: Ezra Klein led me to this re-post byKevin Drum, which led me to the Daily Howler which led back to Paul Krugman

…The real problem is that Krugman (and his acolytes) are doing something equally unfair on the other side of the argument. If we’re going to put aside the trust fund myth and the idea that Social Security is an independent budget item, let’s go all the way. That means that Social Security is just one part, albeit a big one, of a broader social net of unfunded liabilities which threaten to swallow the entire budget well before current college grads retire…

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