Krug asks "What am I doing with my life?"

Krug’s Friday column is a victory lap as he pronounces the defeat of austerity as a solution to the economic crisis.  Krug wonders however, how did it gain prominence?  He theorizes because there is an inherent belief that austerity is payback for past sins (overspending), and this is because the upper class (top 1%) feel it is necessary.  They, of course, don’t feel the pain of this policy decision like the rest of society.  Krug is hoping the recent body blows austerity has taken may be a catalyst for change and even makes it personal;  “What am I doing with my life?, he asks if he can’t help change economic thinking.

In a similar vein he also blogs that while academic articles didn’t actually lead to austerity they gave policy makers the foundation (or you could say the cover) to pursue them.

 

Also very interesting is the the authors of the debt v growth paper that has been refuted have an op-ed in today's Times defending their work.  Let's see if Krug responds - when they published a defense last week - Krug was quick with dismissal, calling their response "really, really bad", "disappointing", and "evading the critique" and its "a terrible thing when so much is at stake."