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New Jersey Governor Chris Christie says he cancelled the second rail tunnel under the Hudson...

New Jersey Governor Chris Christie says he cancelled the second rail tunnel under the Hudson River because the state can't afford it, but Paul Krugman says it's a "terrible, short-sighted move... We have the need... we have the resources... and the price is right." With interest rates on debt at near-record lows, Krugman says it's a great time to borrow for long-term investment.
Comments (15)
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Paul Krugman never met someone else's tax dollars that he didn't want to spend.

     

    I think the $1 billion (and counting) cost overrun might have had something to do with the cancellation, too.
    8 Oct 2010, 10:45 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6716) | Send Message
     
    Krugman would spend us into oblivion. Agree that this country needs to spend more money on infrastructure, but we can't spend that money until we cut back from entitlements.
    8 Oct 2010, 10:59 AM Reply Like
  • If U Say So
    , contributor
    Comments (348) | Send Message
     
    What resources? New Jersey can't print their own dollars. Perhaps, that's how the New York Times stays in business.
    8 Oct 2010, 10:46 AM Reply Like
  • just_another_pembrokian
    , contributor
    Comments (44) | Send Message
     
    We should count ourselves lucky that this Krugman guy only has control over a pen and some papers for a newspaper. If he were actually in charge of the Fed we'd all be living in Zimbabwe by now.
    8 Oct 2010, 10:52 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    it will be a huge cost overrun...billions....... do you need to borrow to build in states..why not use cash on had..the old fashioned way....because it does not buy votes....that is why....if one bond was never sold..states would be in much better shape
    8 Oct 2010, 10:57 AM Reply Like
  • lafano
    , contributor
    Comments (221) | Send Message
     
    Krugman is a self serving idiot just trying to sell more (poor) news papers. It's all politics with this guy. And, he's part of the staff sinking the NY Times. I think their price is around $7.80, almost (approx.) 50% less than it was several years ago.
    8 Oct 2010, 10:59 AM Reply Like
  • Anwar Bhamla
    , contributor
    Comments (98) | Send Message
     
    Meanwhile the Chinese are wondering how stupid the Americans can be if they cannot distinguish between Capital investment and wasteful spending. How stupid can we be if we can spend a trillion dollars on a useless war but cannot invest in our own future.
    8 Oct 2010, 11:00 AM Reply Like
  • Harry Tuttle
    , contributor
    Comments (2221) | Send Message
     
    I think Paul Krugman should step out of his Ivory Tower, form an LLC, borrow the money and build the tunnel as a private endeavor. He can then attempt to recoup the money with tolls. I am sure Christie would throw in a small subsidy to give him a better chance.

     

    Good luck in the real world Dr. Krugman!
    8 Oct 2010, 11:11 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    You know, it would almost be worth a few tax dollars just for the pure enjoyment of watching him trying to do that - and failing miserably at it. :-)
    8 Oct 2010, 11:36 AM Reply Like
  • lafano
    , contributor
    Comments (221) | Send Message
     
    The real question is how can a project run approximately $5 b over original costs??? We all know the reason...
    8 Oct 2010, 11:12 AM Reply Like
  • AxiosCap
    , contributor
    Comments (291) | Send Message
     
    Can we get Krugman a muzzle? The verbal diarrhea from this guy in unending.
    8 Oct 2010, 12:00 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4066) | Send Message
     
    When LBJ decided this country could afford guns and butter, the future of entitlement spending in America was settled. Now, Nancy Pelosi thinks the out of control food stamp program and eternal unemployment checks are just dandy. Fairly soon, Americans are going to learn they can't have their cake and eat it too, but by then it may be too late.
    8 Oct 2010, 12:01 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Repeal or suspension of the Davis-Bacon Act would reduce the cost by 25%.
    But none of those spenders would ever consider it since it would upset their union buddies and benefit taxpayers.
    8 Oct 2010, 12:26 PM Reply Like
  • Silentz
    , contributor
    Comments (713) | Send Message
     
    If Krugman is upset at Christie, then Christie must be on the right track.
    8 Oct 2010, 12:33 PM Reply Like
  • D. McHattie
    , contributor
    Comments (1844) | Send Message
     
    Actually, this is one of the rare occasions where I might agree with Krugman.

     

    Setting aside the issue of cost overruns (which are inevitable), at least this project has a payoff. This would be very different from, say, cash-for-clunkers, the first-time-homebuyer tax credit, the mortgage modification program that all were complete and total wastes of money.

     

    In general, I'm against government tax and spend policy, but if you can borrow, as opposed to tax, and if you use the money to build a productive asset, then it can actually be worthwhile.
    8 Oct 2010, 02:03 PM Reply Like
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