Friday, 27 August 2010

Krugman's howler of the week

In the middle of a well written evisceration of Obama's recovery summer, Paul Krugman lets loose with this howler proving that Keynsians will never really get it.

"In the case of the Obama administration, officials seem loath to admit that the original stimulus was too small. True, it was enough to limit the depth of the slump - a recent analysis by the Congressional Budget Office says unemployment would probably be well into double digits now with the stimulus - but it wasn't big enough to bring unemployment down significantly."

So, the problem with Obama's massive tax-more and spend-much-more stimulus - meant to keep unemployment under 8% while every reasonable figure shows it at upwards of 10% - was that we just didn't spend enough on it. If that were the case, they why isn't Greece a model for all of us to emulate instead of an example of how rampant spending can bankrupt a nation?

That's our Krugman: always good for a laugh!

2 comments:

  1. This is not a recovery. As in Magritte's this is not a pipe? Only this time there's not even a painting of a recovery.

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  2. No painting, but I remember a few articles talking about how great it was. Maybe it is just me, but I don't really know anyone who is frolicking in the great warm fields of our recovery summer.

    Or maybe it was just something I ate; I'll make sure the rest of the Schnitzel passes the sniff test.

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