Krugman’s Magic Act

Source: American Institute for Economic Research
by Antony Davies

“In a recent string of tweets, economist Paul Krugman talked about the government issuing either a trillion-dollar coin or ‘premium bonds’ as a means of keeping its nearly seven-decade-long spending spree going. He argued that premium bonds were more likely because, ‘nobody understands premium bonds,’ and ‘… (it’s) hard to get outraged over something that baffles you.’ We’ve reached a point where the political class’s primary concern is no longer doing what’s best for the economy, but getting around the letter of the law while fooling the public as to what they’re really doing. Politicians are starting to look uncomfortably like drug addicts and the Fed as the neighborhood pusher. Both know what their futures hold, but they’ve come too far to change course.” (05/10/23)