Take a read through Paul Krugman’s blog, and it’s hard not to get pretty bummed. He has zero faith that we’re taking the right policy measures, or that that the economy will recover on its own, and he’s convinced that our political system has gone down the toilet, meaning there’s little hope in the future for getting it right.And yet, Paul Krugman may be the biggest optimist around.
You see, lots of folks are negative about the economy, but everyone has their own angle.
Some folks think immigrants are to blame. Some think the Fed is a cabal controlled by lizardoids and the Rothschilds discouraging savers from building up wealth. Some think dwindling natural resources represent a natural constraint on the economy. Others think that a gigantic Army of Indian and Chinese engineering students will simply crush American students when it comes to competing for good jobs in the new economy.
The list goes on and on.
Now if any of the above represent the real problem with the economy, the US is seriously in trouble. Good luck solving the engineering gap anytime soon. Folks have been trying to “fix” the US education since the beginning of time.
And good luck getting the lizardoids to give up control of the Federal Reserve! First you have to find them (Ben Bernanke is just their puppet, duh!).
Oh, and just try to deport all the immigrants you can’t stand without ripping the country apart.
But with Krugman, the solution is not that hard, really. He just wants us to turn the dial further towards the SPENDING end. Nothing about the solution is complicated, and actually it’s not even implausible.
If his premise is correct — that basically we’re suffering from a demand slump, but that there’s no fundamental, structural economic flaw — then, folks, we have a very solvable problem on our hands. The bond market certainly isn’t an imminent impediment to our spending, and the Fed will scarf up whatever it needs to on the debt side.
Bottom line: Paul Krugman thinks the solution to the economic malaise is fairly simple, and thus he can’t think the slump is fundamentally that bad. He’s an optimist.
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