Michael Kinsley has a deft takedown of New York Times columnist Paul Krugman:
Another reason I remain worried about inflation is that for two years I have been waiting for Paul Krugman, the Nobel Prize- winning New York Times columnist, to tell us when we should reverse course. ...When the economy is robust again, it will be time to start paying down the debt.
Fair enough. But how will we know when it's time? And what evidence is there that Americans are capable of turning on this particular dime and suddenly tearing up their Social Security checks, their Medicare, Medicaid, disability checks, their military retirement pensions, and saying, "No, no, please take this money back and use it to pay down the national debt"? Krugman mocks the "theory of expansionary austerity" -- the conservative notion that austerity, not stimulus, is the key to expanding the economy. But is there nothing at all to the idea that a show of fiscal discipline or even legislative competence might be well received and rewarded by the markets? In Krugman's scenario, he gets to play Santa Claus: "Ho ho ho. Goodness, gracious, don't stop spending now! I'll let you know when it's time. Meanwhile, enjoy!"
The whole column is worth a read.
