Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kidding

I couldn't have made this one up if I tried...

Paul Krugman: Fake Alien Invasion Would End Economic Slump (VIDEO)

Discuss..

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

He was clearly just using it as a hypothetical example comparable to how WW2 helped us overcome the Great Depression, as even the article noted. Why is this news?

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Because it's something for neo-conservative people to grasp in their continued dislike of Paul Krugman.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Bring it on. Could be fun.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Put in a call to Ozymandias. (Comic book Version)

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Well they got to have something, it isn't like they have a single valid argument against him.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Adrian Veidt agrees.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

I prefered him more in Quincy.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

that was Jack Klugman

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Actually they should like the idea since they like war.

A major war would make them and Krugman happy.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Paul Krugman is a big science fiction fan, so this analogy doesn't surprise me as much as it might others. (He was a special speaker at the 2009 Worldcon in Montreal - Charles Stross interviewed him after Opening Ceremonies, and then there was a Q&A.)

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Unless these fake aliens blow up real factories, it won't do anything. Like the Great Depression, the primary cause of our economic slump is excess capacity which suppresses job growth.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

So when will World War III start?

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Eh, he's just an architect of fear.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Krugman obviously has been watching Falling Skies and is anxious like the rest of us for the return of the show next summer.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

This made me rofl too.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

Actually, no. Excess production capacity is not the problem. Deleveraging is. All the individuals that over-borrowed during the last bubble are now reducing their debt levels, which means they're paying down bills rather than buying things. Banks are sitting on piles of cash because no one wants another mortgage or car loan. Businesses aren't expanding capacity because no one is buying material goods. At the same time, businesses aren't reducing capacity either, as whatever Americans aren't buying, Chinese, Russians and Brazilians, etc. are.

So the answer would be for the aliens to blow up the bank servers that keep track of how much people owe on their mortgages.


...or we can skip the aliens and just start building roads, highways and railways. Things we should be doing anyway, since what we have is old and falling apart. Forget about government debt levels. The 10 year yield on treasuries is now below 2%. Given that inflation is 2-3%, that means the US government can borrow money for free, or even less than free. $500 billion to kickstart an infrastructure bank would do a lot of good for the US right now.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

They sure make an odd couple.

 

Re: Paul Krugman: Fake Alien Invasion Would End Economic Slump (No Kid

It's called "Watchmen"