Krugman has addressed this point

Reader comment on: Kinsley on Krugman

Submitted by ben (United States), Jan 20, 2012 08:30

Krugman has addressed this point in the past, both in his column and his blog. When he writes about the Clinton years in which we were running surpluses, he thinks that is the right time to pay down debt, and during the latter Clinton years we were. Besides, if we hit our target inflation rate our 2-3%, so long as we don't add dollars to the debt, the debt shrinks as a portion of our economy. And there is very little evidence that austerity is creating enough confidence in the market to offset the very real problems brought about by cutting spending. See virtually every European country today as an example (England, Ireland, Greece, Spain etc). England should have enormous confidence right now, and yet it looks like it will or already has slipped back into recession. At some point, ideologues have to own up to the facts and see that how they think the World works isn't always how it actually works.


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The Future of Capitalism replies:

You calling Kinsley an ideologue?

I don't think "the Clinton years" really works as an answer to Kinsley's question to Krugman of when we pay down the debt, because the Clinton years were in the past, and we have this big new pile of debt. If you click through to the whole Kinsley column, he gets into it more.

Other reader comments on this item

Title By Date
⇒ Krugman has addressed this point
[w/response] [163 words]
benJan 20, 2012 08:30
Miracles [37 words]MattJan 21, 2012 09:37

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