Free Markets, Free People

Paul “one-note” Krugman still pushing for more stimulus

Krugman’s latest approach to demanding more deficit spending – er, excuse me, “stimulus” spending – centers on the impending election.  The Democrats wouldn’t be about to see an electoral tsunami if they’d just listened to him and spent more.  The economy would be recovering and we’d only be talking about nominal losses in the mid-term as is historically the case with just about every President.

Says Krugman:

The real story of this election, then, is that of an economic policy that failed to deliver. Why? Because it was greatly inadequate to the task.

And he further states:

If you look back now at the economic forecast originally used to justify the Obama economic plan, what’s striking is that forecast’s optimism about the economy’s ability to heal itself. Even without their plan, Obama economists predicted, the unemployment rate would peak at 9 percent, then fall rapidly. Fiscal stimulus was needed only to mitigate the worst — as an “insurance package against catastrophic failure,” as Lawrence Summers, later the administration’s top economist, reportedly said in a memo to the president-elect.

In fact, when you look back at the spending forecast that accompanied the Obama plan, you’ll find something very strange (as we’ve pointed out before).  You’ll find that it spent more than Mr. Krugman said was necessary at the time:

All indications are that the new administration will offer a major stimulus package. My own back-of-the-envelope calculations say that the package should be huge, on the order of $600 billion.

It should be huge, huge I tell you!  $600 billion at least.  We ended up with  $900+ instead new figures show.  It was 50% bigger than Krugman called for but, now, it was “totally inadequate”.

If you, like me, have essentially turned off the one-note bleat from this guy it is because other than calling for more spending he never, ever reviews his work or analyzes the results of someone actually following his advice.  It was huge, it was more than he asked for, and it FAILED.

Has that sunk in yet, Mr. Krugman – your suggestion was less than what was spent and the result was an increase in unemployment and a decrease in economic activity.  That, to most, means the idea of a “huge” amount of deficit spending did not have the effect you and the administration claimed it would.  It. Failed.

Unlike Mr. Krugman, most of us have come to terms with the Einstein definition of insanity and resist doing the same thing over and over again expecting different results.

Obviously that’s not the case with Mr. Paul “one-note” Krugman.  Tuning him out is a perfectly acceptable reaction to his ceaseless call for more deficit spending.



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14 Responses to Paul “one-note” Krugman still pushing for more stimulus

  • Ah, but we don’t meet the Gold Standard (according to a  seemingly former poster) for who’s opinions count.
    We don’t HAVE Nobel Prizes, and letters either before or after our names.  Although many of us may have some of the magical letters, we are perhaps from schools that do not produce the geni that now run the government, or who run (or ran) the Wall Street firms (that folded), or the Auto companies (that needed to be bailed out by people like us who’s opinions don’t count).
    Mr. Krugman isn’t talking to us, he’s talking to his peers, and we, their inferiors, should do as we’re told.  After all, HE has a Nobel Prize, and we don’t.
    It all rather reminds me actually of the wizard of Oz handing out brains to the Scarecrow –
    OZ – “Why, anybody can have a brain. That’s a very mediocre commodity. Every pusillanimous creature that crawls on the Earth or slinks through slimy seas has a brain. Back where I come from, we have universities, seats of great learning, where men go to become great thinkers. And when they come out, they think deep thoughts and with no more brains than you have. But they have one thing you haven’t got: a diploma.”
    Ya know, lately, you could substitute the word “diploma” with the words ‘Nobel Prize” or perhaps “Degree from Harvard” .

  • Don’t miss “Rare Earth” Paul Krugman.
    He advised Enron .. and they failed.  Now he is helping to create a “rare earth bubble.”

  • This must be a NY Times “thing.: Here is Tom Friedman …

    In the short run, we’ll probably need more stimulus to get the economy moving again so people have the confidence to buy and invest.

    • You know, I couldn’t tell it was a Friedman quote given the absence of excessive praise for China…

  • Niall Ferguson slammed the Krugman glang in the proverbial door just the other day on his Keynesian BS.

  • Now I’m wondering if there were any columns from Krugman either lauding the Obama administration for signing a $787 billion stimulus, or worrying that it might have been too much.  Did he really feel that $600 billion was the right amount (based on admittedly simple calculations)?  Or, now that the public has become inured to dollar totals in the trillions, does he feel more comfortable pushing his estimates into that range?

  • Time to scorn and laugh this guy right off the planet.  If there was any thought that Keynesian pump priming could work, there is no doubt now, that it is a total and contemptible failure,

    • “If there was any thought that Keynesian pump priming could work, there is no doubt now, that it is a total and contemptible failure.”
      No, we just didn’t spend enough.  Remarkably, that’s the liberal answer to almost any problem they are trying to solve that hasn’t been solved by (n) amount of actual spending, the solution is always just a few dollars more away if only we would spend it!
      Down Economy, education, poverty, the war on drugs, AmTrak, subsidized housing, etc.    If only we would spend more, these “problems” would be solved.

      • the solution is always just a few dollars more away if only we would spend it!

        >>> Why not? That philisophy works for our public schools!

      • Yes.  I wish that kyle8 was right and that this idiotic “stimulus” would be the final nail in coffin of the idea that government spending – ESPECIALLY massive deficit spending on highly questionable projects – is a good idea.  Unfortunately, “we need just a little bit more and THEN it would work” is an irrefutable answer.

        For idiot liberals, anyway.

  • On a totally unrelated note, the British are now telling Saint Paul to go pound rocks.