Krugman did predict this, no?
Reader comment on: British Taxes and Growth
Submitted by ben (United States), Jan 25, 2011 14:33
I gather you agree with Krugman then? A Keynesian would make this prediction, and indeed it is coming to be true. Obama sounds like he is going to play into this narrative that cutting during a downturn makes sense, but empirically, it doesn't.
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The Future of Capitalism replies:
I would draw a distinction between tax increases and spending cuts. Krugman favored ending the Bush tax cuts on the rich here so I can't imagine he'd have opposed the British tax increase. I blame the British slowdown on the tax increase rather than the spending cuts, Krugman will probably blame it on the spending cuts rather than the tax increase.
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