Why Paul Krugman Is Ultimately Wrong

Nobel laureate and Princeton economics professor Paul Krugman has, for many months, been writing and rewriting basically the same article in The New York Times. The essence of Professor Krugman's argument is that austerity policies are misguided and are strangling the slow US economic recovery; what is needed is more Keynesian-style fiscal policy -- more government deficit spending on teachers, roads, bridges, and energy projects. With consumer demand sluggish and the housing market still not back to normal, Professor Krugman contends that more government stimulus is urgently required to sustain the recovery and spark renewed economic growth.