Here’s another excellent article from Nobel Prize winning, liberal, economist, Paul Krugman, writing in his Op-Ed blog in the New York Times. It’s a “must read” in my view. Check it out!
The point, then, is not to ignore the long run; it is to recognize that the boom, not the slump, is the time for austerity, and spending cuts right now are disastrous policy. In the long run we are all dead; the point is to avoid killing our economy before its time.
If this argument is so simple, why are the Governments of the US, the UK and Germany holding back from reflating their economies to give growth a chance?