Courtesy of Mish.
Financial Times writer Samuel Brittan says You Don’t Need to be a Lefty to Support Krugman.
Brittan kicks off with “The remedy for too little spending is more spending. Everything else is commentary.“
Who Decides?
Just who gets to decide there is “too little spending?” Krugman? Brittan?
How about the free market?
Look at what promotion of spending got us. The mother of all housing bubbles is what.
In a 2002 New York Times editorial Krugman said “To fight this recession the Fed needs…soaring household spending to offset moribund business investment. [So] Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.“
Krugman claims “that wasn’t a piece of policy advocacy, it was just economic analysis.” Yeah right. For further discussion please see Krugman’s Intellectual Waterloo
Look at what government spending did to Japan and its debt-to-GDP ratio of 220% and climbing. Look at what spending did to Spain and Greece.
Japan proves that things might not matter for a long time, but anyone who does not think Japan is going to pay a very hefty price for that debt is just not thinking.
Brittan asks “Why has this message been so difficult to accept?“
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