Paul Krugman argues that America is like Japan in the 90s

[ridewave444]

A VERY smart man. He seems so nervous most of the time though.

[KrugmanTheKing]

@ridewave444

Indeed, but some people prefer a doctrine to reality.

[TimeWarp66]

Paul Krugman is an idiot.

[KrugmanTheKing]

@TimeWarp66

Only in the minds of people who do not understand what he proposes...

If you know what's a liquidity trap, how to use the IS-LM and have access to sensible graphs, you can make a sound judgement of his propositions and, it's very simple to make: pile up everything he explained since 2008 and see how it held up.

The graphs show contractionary policies are contractionary, exactly as he said.

[drusha1]

he should've mentioned his ultimate solution - the grand build up against fake alien invasion followed by a grand tear down.

[KrugmanTheKing]

@drusha1

Obviously, someone on here has no idea of what Krugman meant by this because he's trying to sound ironically sarcastic when he's actually making an idiot of himself by writing what he wrote...

It was an analogy with WWII. The meaning was that, seemingly, only war seems to draw the political consensus required to go forward with the necessary policies. And, yes, the war did end the Depression and the government did what it had to do after the recovery.