Zero Hedge remembers how the Great Housing Bubble of 2003-7 was something Paul Krugman had called for:
Before you say “But that was in 2002!”, consider more recent examples of Krugman stupidity, like his calling in 2012 for the government to boost (supposedly) the economy by faking an invasion of space aliens. The Krugtron quote from Time’s account:
“If we discovered that space aliens were planning to attack, and we needed a massive build-up to counter the space alien threat, and inflation and budget deficits took secondary place to that, this slump would be over in 18 months,” Krugman says…
A second instance, from PuffHo’s account:
“So if we could get something that could cause the government to say, ‘Oh, never mind those budget things; let’s just spend and do a bunch of stuff.’ So my fake threat from space aliens is the other route,” Krugman said before a laughing crowd. “I’ve been proposing that.”
So he said it more than once; only half-joking at best. The man loves his malinvestment.*
(*Borrow-and-spend that creates market bubbles, overbuilding, leaf-raking, wars or other activity that is economically inefficient, or useless, or even destructive.)
Related: It struck me that one way you can tell a left-liberal is: government spending always sounds like a good idea, to them. Should government spend, to stimulate the economy? Check. Spend more on education, so people will (supposedly) be more educated? You betcha. It never occurs to the left-liberal that government just might be incompetent at most things. So that the proposed spending would do nothing at all – or would even make things worse, as it only subsidizes incompetence. For example: Subsidizing an incompetent system of educators. The possibility just doesn’t cross a liberal’s mind.