More Stockman!

Wow, Stockman must have been getting a lot of attention, for something Krugman mentions earlier in the week that he isn’t going to pay too much attention to now becomes the focus for his Friday column.  Basically it is a good summary of his overall viewpoint --- all the concern we have about debt and deficit is overplayed and the government should be spending more not less to get unemployment down.  People who argue against this idea are just moralistic and puritanical.  Krugman provides examples to prove the predictions of the other side have not come to pass - inflation has not increased and interest rates have remained low. To respond to the other’s side claim of hysteria about living beyond our means he answers that the vast majority of debt is just owned from one American to another so there is no net effect on national wealth.