Back in 2008, Paul Krugman characterized the strange economics we had fallen into, like Alice through the looking glass:
Paul Krugman, Depression Economics Returns
We are already, however, well into the realm of what I call depression economics. By that I mean a state of affairs like that of the 1930s in which the usual tools of economic policy — above all, the Federal Reserve’s ability to pump up the economy by cutting interest rates — have lost all traction. When depression economics prevails, the usual rules of economic policy no longer apply: virtue becomes vice, caution is risky and prudence is folly.
In an Op-Ed piece today Krugman points out that Trumps near-term economic plans may – for the wrong reasons – wind up being largely beneficial, because the economy could use more stimulus, even at the cost of higher interest rates and increased debt.
Just because Trump doesn’t understand macroeconomics doesn’t mean he can’t push the needle in the right direction. Although doing it by giving billions to the wealthy is a piss-poor way to do it.
from Stowe Boyd http://www.stoweboyd.com/post/153169912637
