Krugman: we’re sacrificing the future as well as the present.

This time Krugman points to the cuts in spending in U.S. particularly in investments that warns us of a grey near future. Also not mentioned too much, this year ends all the subsidies in Spain and Germany to renewable energy, in the future all of us will need another source of energy different from oil. Maybe it´s not important in this moment but we need to be aware what are we letting behind not just in U.S. this concerns to all. .

Destructive Austerity, USA by P.Krugman

That is, we’re sacrificing the future as well as the present. Oh, and the cuts that aren’t falling on investment in physical capital are largely falling on human capital, that is, education.

It’s hard to overstate just how wrong all this is. We have a situation in which resources are sitting idle looking for uses — massive unemployment of workers, especially construction workers, capital so bereft of good investment opportunities that it’s available to the federal government at negative real interest rates. Never mind multipliers and all that (although they exist too); this is a time when government investment should be pushed very hard. Instead, it’s being slashed.

Another point of view for your consideration...

Renewable energy deals hit record high in 2011: report

The renewables market is maturing, fuelling more consolidation, and a rethink of the role of nuclear in many countries after the Japanese nuclear crisis last year provided an extra boost to renewables generation in certain markets.

"Sustained high deal numbers and record total value reflect a maturing of the sector," said Paul Nillesen, PwC renewables partner.

"The trend is all the more noteworthy given the uncertainty in the market and in government policies on renewables. We believe that deal flow will continue to be significant in the medium term."