Now, many of us believe that the massive monetary and "Fiscal" interventions into the US economy from both federal and state governments are likely to create a depression and make the current rates of unemployment grow even more.
Krugman seems to believe that there isn't enough government intervention, which is a regular theme in his writings.
Who can forget Krugman's 2011 clarion call to form real defenses against an imaginary invasion by space aliens in order to revitalize the economy? Anyone who has read Keynesian economics knows that according to Keynesians, the economy always is a slip away from going into massive unemployment unless government cuts interest rates until they cannot be cut anymore, and engages in massive new spending to increase "Aggregate demand" because "Full employment" only can be reached when government intervenes, period.
To the question of how we avoid an out-and-out depression, Krugman replies that we need to "Stay the course" and keep everyone locked up even longer.
One is reminded of J.M. Keyne's quote that credit expansion from thin air "Turns stones into bread." Krugman essentially is saying the same thing; government via massive monetary injections into the economy magically is substituting money for the real thing: production of actual and consumable goods and services.
Like so many others on the left, Krugman believes that we are faced with a stark choice: lock down everyone and defeat the coronavirus or allow people to live their lives without government interference and so get sick and die.
Given that the original policies which Krugman has endorsed came about because of an outright fraudulent epidemiological model by Neil Ferguson of Imperial College of London, which predicted a whopping 2.2 million American deaths unless government acted immediately to quarantine the whole country, it is just as hard to take Krugman the epidemiologist seriously as it is to take Krugman the economist with anything but a huge block of salt.
https://mises.org/wire/krugman-we-need-more-unemployment-save-us-unemployment
Krugman seems to believe that there isn't enough government intervention, which is a regular theme in his writings.
Who can forget Krugman's 2011 clarion call to form real defenses against an imaginary invasion by space aliens in order to revitalize the economy? Anyone who has read Keynesian economics knows that according to Keynesians, the economy always is a slip away from going into massive unemployment unless government cuts interest rates until they cannot be cut anymore, and engages in massive new spending to increase "Aggregate demand" because "Full employment" only can be reached when government intervenes, period.
To the question of how we avoid an out-and-out depression, Krugman replies that we need to "Stay the course" and keep everyone locked up even longer.
One is reminded of J.M. Keyne's quote that credit expansion from thin air "Turns stones into bread." Krugman essentially is saying the same thing; government via massive monetary injections into the economy magically is substituting money for the real thing: production of actual and consumable goods and services.
Like so many others on the left, Krugman believes that we are faced with a stark choice: lock down everyone and defeat the coronavirus or allow people to live their lives without government interference and so get sick and die.
Given that the original policies which Krugman has endorsed came about because of an outright fraudulent epidemiological model by Neil Ferguson of Imperial College of London, which predicted a whopping 2.2 million American deaths unless government acted immediately to quarantine the whole country, it is just as hard to take Krugman the epidemiologist seriously as it is to take Krugman the economist with anything but a huge block of salt.
https://mises.org/wire/krugman-we-need-more-unemployment-save-us-unemployment
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