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|Subject: Re: Krugman whacks, and waxes Mish||Date: 2/11/2013 9:35 AM|
|Author: Hawkwin||Number: 415587 of 473673|
Seems like you are doing the precise thing Krugman cited in his response, i.e. creating a straw man that has nothing to do with the person and arguing against it.
No, read Krugman's own comments. I quoted him in context. From above:
If we discovered that space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. And then if we discovered, oops, we made a mistake, there aren't any aliens, we'd be better –
By Krugman's own words, we made a mistake (a useless war).
So if we simply invaded another country in the search of WMDs, we would get our economy growing again.
On another point, Krugman has not been wrong on anything since the 90s.
While your opinion of his track record is not really relevant to the topic, I will share two of my favorite Krugman commentaries.
As for unemployment, Krugman is predicting it will peak around 9% sometime later this year.
Probably my favorite, next to the alien attacks, and it relates to this topic. Krugman finds the "silver linings" to the 9/11 attacks:
Nonetheless, we must ask about the economic aftershocks from Tuesday's horror.
These aftershocks need not be major. Ghastly as it may seem to say this, the terror attack -- like the original day of infamy, which brought an end to the Great Depression -- could even do some economic good.
So the direct economic impact of the attacks will probably not be that bad. And there will, potentially, be two favorable effects.
First, the driving force behind the economic slowdown has been a plunge in business investment. Now, all of a sudden, we need some new office buildings. As I've already indicated, the destruction isn't big compared with the economy, but rebuilding will generate at least some increase in business spending.
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