Paul Krugman Almost Commits Himself

Krugman praying

But stops himself in time.

Krugman, the most vociferous Keynesian, always wants more money printing and government borrowing and spending.

He is cagey about it, never says exactly how much or for how long. He mostly just complains that what was done before wasn’t enough. This way the claim is impossible ever to disprove, since if only even more had been done, what clearly did not work would have worked.

There are slip ups. Once Krugman said that only “a little” money printing would suffice to end business cycles completely and that certainly did not prove to be true. But most of the pronouncements are too vague to test.

The piece below is more of the same. It suggests, guardedly, that Japan’s new tack of even more borrowing and spending and money printing to back it up may yet do the trick and pull that economy out of the ditch. But the operative word is “may.” Written this way, the piece has the requisite deniability; if it doesn’t work, Krugman can go back to blaming the Japanese government as too timid.

The one thing Krugman will never admit is that Keynesian remedies have not proved themselves in any real time or place.  They are bedtime fantasy stories in which governments can spend whatever they like and a problem of too much debt is magically solved by increasing the debt further.

Click here for the article.