Krugman writes: "Now France has been attacked, unfortunately by real terrorists instead of fake aliens, and Hollande is declaring that security must take precedence over austerity. Is this the start of something big?"
Economist Paul Krugman. (photo: Princeton University)
Terrorists and Aliens
19 November 15
he Great Depression wasn’t ended by the intellectual victory of Keynesian economics; in fact, the publication of The General Theory was followed by the great mistake of 1937, when FDR tried to balance the budget too soon and send the U.S. economy into a severe recession. What put a decisive end to the slump was World War II, which led to deficit spending on a scale that was politically impossible before.
This story is what led me to facetiously suggest that we fake a threat from space aliens, to provide a politically acceptable cover for stimulus.
Now France has been attacked, unfortunately by real terrorists instead of fake aliens, and Hollande is declaring that security must take precedence over austerity. Is this the start of something big?
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