Paul Krugman

  • Aired:  06/18/12
  •  | Views: 23,107

Nobel Prize winner Paul Krugman discusses America's recessions and depressions, the effect of affluence on politics, and Europe's big economic mistake. (6:50)

>> WELCOME BACK, EVERYBODY.

MY GUESTS TONIGHT IS A NOBEL PRIZE WINNING ECONOMIST WHO HAS WRITTEN MORE THAN 20 BOOKS.

WHAT A COINCIDENCE TLARX IS THE SAME NUMBER OF HIS BOOKS I HAVEN'T READ.

PLEASE WELCOME PAUL KRUGMAN.

(CHEERS AND APPLAUSE)

>> THANKS SO MUCH FOR COMING BACK.

HOW IS THE NOBEL, YOU KEEPING IT POLISHED?

>> IT'S GOING TO CLOG SOME WHERE I'M NOT SURE WHERE,

SOMEWHERE IN THE HOUSE.

>> HOW DEVIL MAY CARE ABOUT OUR NOBEL.

AREN'T WE THE ONE.

>> NO, NOW SIR, YOU HAVE AN ORGANIZED MIND, DON'T YOU.

>> SOMETIMES.

YOU MUST TO BE ABLE TO WRITE BOOKSMENT YOU HAVE A NEW ONE CALLED END THIS DEPRESSION NOW.

SO YOU WILL ADMIT THAT OBAMA TOOK IT TO A DEPRESSION.

YOUR WORDS OR PINE, SIR.

>> NO HE INHERITED ONE AND UNFORTUNATELY HE HAS NOT TAKEN US OUT OF IT.

FOR SOME MISTAKES ON HIS PART BUT MOSTLY A WHOLE LOT OF OPPOSITION FROM THE OTHER

GUYS BUT IT'S A WORLDWIDE PROBLEM.

WE JUST ARE STUCK IN WHAT IS REALLY A DEPRESSION.

>> OKAY SO WHAT IS THE DIFFERENCE BETWEEN A DEPRESSION AND A RECESSION.

I KNOW A DEPRESSION GIVES US THE GREATEST GENERATION.

>> THE GOODES GENERATION.

>> A RECESSION IS WHEN THINGS ARE GOING DOWN.

>> RIGHT.

>> A DEPRESSION IS WHEN THINGS ARE DOWN.

SO WE HAVE, YOU KNOW --

>> IT GOES DOWN AND IT LEVELS OFF.

>> WE HAVE THIS THING CALLED THE GREAT DEPRESSION.

WHICH WAS ACTUALLY TWO RECESSION AND TWO RECOVERIES.

IT WASN'T ALL DOWN.

BUT IT WAS LOUSY THE WHOLE TIME.

IT WAS HIGH UNEMPLOYMENT,

MISERABLE TIMES AND THAT'S WHAT WE'RE GOING THROUGH RIGHT NOW IS A PERIOD WHERE

YEAH, THE ECONOMY IS GROWING.

WE'RE ADDING JOBS BUT IT'S STILL A TERRIBLE TIME FOR LOTS OF PEOPLE.

NOT AS BAD AS THE GREAT DEPRESSION.

I'VE BEEN SUGGESTING THAT AS A CAMPAIGN SLOGAN BUT I DON'T THINK IT'S GOING TO FLY.

BUT IT'S PLENTY BAD.

AND WE'RE TO THE GETTING OUT OF IT SO ANYONE CAN NOTICE.

>> SO END THIS DEPRESSION NOW.

HOW DO WE DO IT, THAT'S A ONE-PAGE BOOK, RIGHT.

THAT'S ELECT MITT ROMNEY.

>> OH BOY.

>> WOW, I MEAN IT'S ACTUALLY INTERESTING.

THERE'S A LIST OF THINGS THAT YOU REALLY SHOULD NOT DO, LIKE LAYOFF LOTS OF

GOVERNMENT WORKERS WHILE YOU'RE IN A DEPRESSION.

>> Stephen: BECAUSE THOSE AREN'T REAL JOBS.

>> Stephen: GOVERNMENT CAN'T CREATE JOBS.

GOVERNMENT CAN'T CREATE JOBS.

>> THEY SURE FEEL LIKE JOBS.

YOU KNOW ANY SCHOOLTEACHERS.

>> NO I DO, THEY SURE LOOK LIKE REAL JOBS.

ACTUALLY NOTHING TER FEWS-- .

>> Stephen: AND I SUPPOSE-- I SUPPOSE FIREMEN AND POLICEMEN ARE REAL JOBS TOO.

>> THAT'S RIGHT, ACTUALLY IN A WAY THE SOLUTION, ENDING THIS RIGHT NOW IT COULD BE

QUITE EASY BECAUSE AT THIS POINT IF WE WOULD JUST REHIRE ALL THE TEACHERS AND

FIREFIGHTERS AND POLICE OFFICERS THAT HAD BEEN LAID OFF IN THE LAST SEVERAL

YEARS, LAID OFF BECAUSE OF BUDGET CUTS AND CONGRESS WON'T ALLOW AIDS TO STAY

AMONG GOVERNMENTS WE'D BE A LONG WAY TOWARDS GETTING OUT OF THIS.

WE WOULD HAVE AN UNEMPLOYMENT RATE BELOW 7%.

THIS WOULDN'T FEEL AT ALL LIKE IT DOES RIGHT NOW.

>> Stephen: SO THE, WHAT IS YOUR PRESCRIPTION IN HERE FOR GUYS LIKE ME IN THE 1%.

WHAT SHOULD WE DO TO HELP?

I AM IN THE 1%.

>> YEAH, YOU KNOW-- .

>> Stephen: WE'RE WILLING TO HELP AMERICA.

>> YEAH.

>> Stephen: I'M WILLING FOR TO YOU CUT MY TAXES.

>> RIGHT.

YEAH, YOU KNOW, IT'S MOSTLY,

THE 1%S HAD AN AWFUL LOT OF POLITICAL INFLUENCE AND WHAT HE --

>> WE KNOW WHAT WE'RE DOING BECAUSE WE GOT OUR MONEY BECAUSE WE ARE THE SMART GUYS.

>> YEAH.

I MENTION THE 1% TOO.

>> Stephen: THERE WE GO (APPLAUSE)

>> A LOT OF IT IS CHOOSING THE RIGHT PARENT.

REALLY HELPS TO PUT SOME THOUGHT INTO IT.

A LOT OF IT IS JUST PLAIN LUCK ALONG THE WAY.

>> Stephen: I DIDN'T GET THIS SHOW BY LUCK.

I GOT THIS BECAUSE I WAS A TOLL BOOTH ATTENDANT ON THE NEW JERSEY TURNPIKE AND JON

STEWART DROVE THROUGH ONE DAY.

THAT'S NOT LUCK, THAT'S SKILL.

>> OBVIOUSLY THE WAY TO GET OUT OF A REAL DEPRESSION IS A WAR IN EUROPE.

AND ARE WE GOING TO GET ONE OVER THERE BECAUSE HOW IS EUROPE DOING?

EUROPE IS IN BIG TROUBLE.

I'M HAVING A HARD TIME NOT USING FORBIDDEN WORDS BUT EUROPE IS IN BIG TROUBLE.

THEY MADE A TERRIBLE MISTAKE WHICH IS ONE CURRENCY WITHOUT GOVERNMENT AND COMPOUNDED IT BY HAVING A

LOT OF THE WRONG POLICIES.

>> BUT OBAMA IS A SOCIALIST AND EUROPE IS A SOCIALIST SYSTEM AND SO EUROPE IS JUST

A PREVIEW OF WHAT WILL HAPPEN TO AMERICA, RIGHT.

YOU WANT TO TURN AMERICA INTO-- EUROPE'S ECONOMIC PROBLEM.

>> SO WHICH IS THE FAMOUS,

MOST GENEROUS WELFARE STATE IN THE WORLD, THE PLACE THAT,

EVEN NOW BY EUROPEAN STANDARDS IS PRETTY CLOSE TO THE TOP IN TERMS OF THE

GENEROSITY OF-- YOU JUST HAD IT ON THE PROGRAM.

SWED SEN A WELFARE STATE,

FOR GENERATIONS CONSERVATIVES HAVE BEEN TELLING US THAT THAT SWEDISH WELFARE STATE IS GOING TO

DESTROY THEIR ECONOMY THAT STOCKHOLM WILL TURN INTO A SMOKING RUIN, WHICH IF YOU

HAVE EVER BEEN THERE IT DOESN'T LOOK LIKE.

>> Stephen: PAUL, PAUL, WE SWEDS ARE VERY WORRIED.

>> RIGHT ABOUT OUR COUNTRY.

AND SWEDEN IS DOING REALLY WELL.

YOU ACTUALLY LOOKED AT WHAT EUROPEAN COUNTRY DID CONSERVATIVES LOVE BEFORE THIS CRISIS.

WHAT WAS THE HIGHEST RANKED WESTERN COUNTRY ON THE HERITAGE INDEX OF ECONOMIC FREEDOM.

WHAT WAS THE COUNTRY THAT THE LOWEST CORPORATE TAX RATE.

IT WAS IRELAND.

AND IRELAND HAS DONE EVERYTHING.

IRELAND IS ROMNEY ECONOMICS IN PRACTICE.

THEY'VE LAID OFF A LARGE BRANCH OF THEIR PUBLIC WORKFORCE, SLASHED SPENDING,

EXTREME AUSTERITY PROGRAMS.

THEY HAVEN'T RAISED TAXES ON CORPORATIONS OF THE RICH AT ALL.

THEY HAVE 14% UNEMPLOYMENT.

30% YOUTH UNEMPLOYMENT.

ZERO ECONOMIC GROWTH.

IRELAND IS A DEMONSTRATION.

I THINK AS IRELAND IS AMERICA'S FUTURE IF ROMNEY IS PRESIDENT.

>> Stephen: THE IRISH CAN HANDLE IT.

THEY ARE-- THE IRISH DO VERY WELL IN BLEAK DEPRELTION-- DEPRESSING TIMES.

THEY'VE GOT THOSE JIGS AND EVERYTHING THAT THEY DO.

>> YES.

>> Stephen: THANK YOU SO MUCH FOR JOINING ME.

(CHEERS AND APPLAUSE) THE BOOK IS END THIS DEPRESSION NOW.

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