I thought Krugman said ...
"Austerity advocates predicted that spending cuts would bring quick dividends in the form of rising confidence, and that there would be few, if any, adverse effects on growth and jobs; but they were wrong.
It’s too bad, then, that these days you’re not considered serious in Washington unless you profess allegiance to the same doctrine that’s failing so dismally in Europe."
SOURCE: NY TIMES
So if Krugman declared victory against those advocating austerity, do you think he could explain this?
"The euro-zone economy expanded in the first quarter at its fastest pace since 2007, according to data released Friday, as booming growth in Germany led the way and highlighted the stark divide between the region’s robust core and the debt-troubled periphery."
German Economy Boooms!
It seems there are two economy's in Europe. The debt riddles economies (PIGS) are struggling, while the economies that have followed fiscal discipline for years are booming.
Sure, Krugman loves to declare victory six months after a country begins austerity, but he clamps up pretty tight after a couple of years. Why? Because he has been trained in economic theory that doesn't have an answer for this. He is trained to believe money is what you print, not the savings of work. His Keynesian model is flawed, but he is incapable of seeing his life's beliefs banished by reality, so he shuts up and tries to find some other Socialist agenda item to write about.
What, you ask, did he write about this weekend? Here is the first paragraph: "Is it just me, or has Verizon Wireless 3G service along the Northeast Corridor gotten significantly worse over the past few months? There were always gaps, but they seem to have multiplied — no signal much of the way between Baltimore and Washington."
SOURCE: NY TIMES
Very impressive Mr. Nobel Prize, I seem to think I saw the same thing on my friends Facebook mobile update two days ago.