Welcome to economic bizarro world.
Krugman is divorced from reality. Like his North Star John Maynard Keynes he looks upon savers with derision. Saving is the pretty preoccupation of the petty bourgeois. In Krugman’s worldview those who save the money they have earned are depriving others of economic benefit because the money is not spent. It’s not like people earned that money without society helping them along anyway right?
(From The Global Dispatch)
You won’t see Al Gore or John Kerry arguing against higher tax rates, and why should they? For the most part, they either can shelter their income or pay the extra bit, knowing that they will receive huge amounts of free publicity for their “selfless” actions. Furthermore, their own investments will not be placed at risk by the new confiscatory tax policies.
Then there are the people Krugman hates, the real entrepreneurs, the people who have taken real risks and made their money in the markets without the political favors. Moreover, many are in the “millionaire next door” category, business owners who have saved (Oh, the HORROR! Predatory Savers in our midst!), invested, put off present consumption, and maybe don’t have the proper educational “credentials.”