NP - Toryism (Austerity) Isn't Working.

[Paul Mackin]

On 4/27/2012 11:46 AM, alice wellintown wrote:
> OK, Right. But Ben and Krug are econ dpt. profs, the latter kind.
>
> However, it is Krug, in his position as journalist, that is marching
> to and banging the editorial drum.
>
> Ben, in his position as Fed Chair, is ignoring the Biz-School
> editorials and responding to Krug, even as Krug accuses him of  giving
> in to the WSJ&  Co.
>
> I suspect that we've head the last from Ben on this because Krug is
> getting more and more absurd with his attacks.
>
> The two academics disagree. that is healthy and normal. But one sets
> fed Policy and the other, despite his academic credentials, is a
> journalist.
>


Isn't Krugman's main point that it's wrong to justify unemployment's 
remaining at high levels on the grounds that adequate stimulus might 
produce small amounts of inflation.  This sounds like more of a moral 
than a political argument. It's also textbook macroeconomics.

Inflicting unnecessary pain is a sin and fiscal stimulus produces 
growth, both points working together, make his case pretty persuasive.


P