Krugman's latest is jarring:
[I]f our economy has a persistent tendency toward depression [due to structurally inadequate demand], we’re going to be living under the looking-glass rules of depression economics--in which virtue is vice and prudence is folly, in which attempts to save more (including attempts to reduce budget deficits) make everyone worse off--for a long time.
As an economist he evades discussion of the unlikely politics of reversal--massive stimulus--which leaves the emphasis, depressingly, on a long time, in the wrong direction.
I am unconvinced, however, that the unlikely politics of a bold Keynesianism are tantamount to impossible politics. Such a necessary educational campaign--pounded as part of a bold resurrection of Obama's second term--could replace a whole lot of the electorate's lost confidence and missing hope.
It's something, anyway, but defense.