Economics, as I say often, is not a morality play. As far as creating aggregate demand is concerned, spending is spending – public spending is as good as but also no better than private spending, spending on bombs is as good as spending on public parks.Economics is not a morality play but spending on bombs is NOT "as good as" spending on parks. This is not a trivial side issue but the core of the problem. Spending on the wrong things ultimately defeats the purpose of Keynesian stimulus. Keynes knew this. It's a shame Krugman doesn't know his Keynes.
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Saturday, October 29, 2011
Paul Krugman is Wrong, Wrong, Wrong
Posted by Sandwichman at 12:22 PM