Krugman: Think Beyond Stimulus to New Economy
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Once the nation’s economy begins to recover; we should build a durable and broadly shared prosperity. That was the message Nobel laureate Paul Krugman brought today to the first in a series of conferences on progressive ideas to turn around the economy.
Speaking to more than 800 participants at the Thinking Big/Thinking Forward conference in Washington, D.C., Krugman said that to prevent the nation’s economic pit from becoming a permanent trench, we will need a combination of fiscal and financial policies. And that will require the government to invest in the economy in a big way to spur demand.
Krugman, who won the Nobel Prize in economics in 2008, disputed Republican claims that the best way to stimulate the economy is through tax cuts.
There’s more bang for the buck from government spending than from tax cuts.
