Paul Krugman: We're In A Depression

Ace, Hot Air (Captain Ed)

Ace and Capt Ed deconstruct Krugman.  I'll just join on in and pile on - hah, hah, hah.

The part that is unfortunate is that a guy like Krugman will take in a lot of people.  The problem with the indiscriminate approach to spending is that it doesn't get results, unless the result sought is a bigger government.

Keep in mind base line budgeting.  Once the stimulus got added into the spending, it became the new baseline.  We have actually had multiple stimuli because the budget is at higher levels than it would have been if there had not been any stimulus in the first place.  Yet, all of these trillion dollar deficits haven't yielded a recovery.  Why not?   Because there's nothing intelligent behind it.

All Krugman can offer is a weaker dollar and greater debt.  The results are there to behold- stagnation if not depression.  His own words.

By the way, the Depression didn't end until after World War II.  Hopefully, we won't need a war to get over this depression, but that didn't stop Krugman from advocating one.