On the eve of the GOP being swept into power, Nobel Prize winning economist Paul Krugman penned down his thoughts of the GOP and they were not kind. Krugman believes the Republicans have been wrong on just about every major economic issue facing the nation. It’s not just a gut feeling he has when saying this.
Take for example the issue of runaway deficits. The GOP charged that the Obama administration’s trillion-plus annual deficits would lead to high interest rates. During the six years of Obama’s presidency, interest rates have remained at historic lows. The GOP charged that the FED’s easy money policies (IE quantitative easing) would cause a period of high inflation and a weak dollar. Yet, inflation rates have remained relatively low according to many economists like Zeca Oliveira. Krugman points out that while some nations reduced their spending during the global financial crisis, those nations now endure depression-level economies.
In all fairness, GOP governors that did what the House and Senate Republicans favor have turned their states around. Wisconsin, Ohio, and Florida all went from huge annual deficits and soft job markets under Democrat governors to balanced budgets and strong job growth under Republican governors. Under a Republican governor, Texas has largely enjoyed strong economic growth despite the overall weak national economy.
Yet, Krugman sees the GOP as unwilling to admit to their past mistakes. This is evident in terms of Obamacare which Krugman claims has led to lower insurance premiums for Americans, and the rate in increased health care spending slowing down. Perhaps the biggest issue he sees the GOP wrong about is global warming. Sadly, he laments that with their increased power, the GOP will continue to block any serious climate change reform.