I know this is kind of late in coming, but it seems that his writings and guest appearances have finally shown him to be the ‘Kook’ that he is.
I tried to read his last article at the NYTimes – http://krugman.blogs.nytimes.com/2011/08/19/awesome-wrongness-2/ and was left trying to make any sense of it. Usually in writing an article, you usually try to make a point with data to back it up. I still can’t find any point to the article, of course trying to use logic in deciphering Krugman’s ramblings is a useless exercise. I thought maybe he was trying to compare us to Japan, but I’m sure he doesn’t want to go there, because that would shed light on the failed economic theory of Keynesian with Japan’s lost decade(s).
His on TV rant about using a possible alien invasion to go all out in government spending to get our economy back to booming was at least a valid, but wacky attempt at a wrong idea. Many don’t know that during WW2, large numbers of employable men and women were off working/dying in foreign countries while back in the US women for the most part were coming into the workforce to fill the void. Obviously unemployment would drop dramatically when you remove a large part of the eligible workforce. The other party many don’t remember is the rationing that many endured here in the US during WW2, in order to support the war effort.
A full out war economy is going to be completely unbalanced even if at a snap shot it seems to have come out of a Depression. The real test of an economy is when everyone comes back and moves to a peace time economy with a productive private business economy. Do a search on Ludwig Erhard of West Germany and see what he did to take a devastated Germany and turn it into the economic power house after WW2. Liberals such as Krugman would be in complete denial of such a historical recount, saying it wouldn’t apply to our “complex” economy of today. Yet after WW2, and post FDR, we moved away from the New Deal policies and freed up the economy resulting in booms afterward.
In the end I almost feel sad for Krugman. Almost. Maybe someone will be kind enough to admit him to a looney bin, and we’ll start using the phrase, “Don’t be a Krugman.”