Home > Miscellaneous Musings > More insanity from Paul Krugman

More insanity from Paul Krugman

Krugman again calls for a trade war with China, arguing that such a war would hurt surplus countries more than deficit countries.

How the Hell does he figure that out?  If the currency is devalued – which he acknowledges – Americans are effectively getting goods more cheaply than otherwise.  In other words, they are getting an income subsidy.

Krugman believes a massively higher cost of living for the average American is a good thing, leading to greater disposable income and more economic activity?  Krugman, meet Smoot-Hawley.

The guy is nuts.

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