I have read many articles penned by Paul Krugman. I do not have an advanced degree from MIT or a Nobel Prize in economic sciences. However, I do have many life experiences in managing the economics of work and family.
Krugman’s prescribed fix for the economy is exactly what got us into this mess to begin with: living on a credit card well beyond our means. The large debt load that has been created at the federal level – and in some cases state and local – will depress growth for years to come. We will not grow our way out of this enormous debt through additional stimulus spending. The longer we do this, the more we will heighten and prolong the misery of anemic growth.
No family can function and grow well under heavy debt loads. The U.S. has heavy debt load at the individual and government levels, and we continue to see de-leveraging due to the heavy debt. This process will continue until we are back to normal debt loads. No amount of spending by the federal government will stop this process. It can only push out and make the misery even worse. Some austerity is good, and we need to live within our means.