A satirist named Carlos R. Graterol admits creating a fake Google+ account under the name of New York Times columnist Paul Krugman and to posting a controversial comment under Krugman’s name. The comment lamented the lack of damage from yesterdays earthquake, and explained in Krugman’s voice that more damage would have spurred more government spending, which he posited would be beneficial to the economy.
Conservative writers pounced on the comment, which is very similar to other comments the real Krugman has actually made about disasters and Keynsian government spending. Liberal writers raced to defend and expand on the comment.
Graterol posted screen shots of the “Krugman” Google+ account administration screens to prove his ownership of the account.
People on twitter might be joking, but in all seriousness, we would see a bigger boost in spending and hence economic growth if the earthquake had done more damage.
I do not regret writing it and I hope it will enlighten many on the perverse economic views held by a Nobel winning economist writing for the New York Times who also lectures at Princeton University. While Paul Krugman did not write the above statement, he has made similar statements within the year and I would not be surprised if Paul Krugman did not in fact hold this view.
And yes, this does mean that the nuclear catastrophe could end up being expansionary, if not for Japan then at least for the world as a whole. If this sounds crazy, well, liquidity-trap economics is like that — remember, World War II ended the Great Depression.
Three days after the 9/11 tragedy Paul Krugman had this to say.
Nonetheless, we must ask about the economic aftershocks from Tuesday’s horror.These aftershocks need not be major. Ghastly as it may seem to say this, the terror attack — like the original day of infamy, which brought an end to the Great Depression — could even do some economic good.
If you showed any disgust at my fake comment written on Google+, I expect you would show equal antipathy for the two quotes above. For too long now, Krugman along with other Keynesian economists such as Nouriel Roubini have supported Keynesian policies which advocate for more taxation of the job creating private sector to contribute to the job destroying public sector. While he public sector has “created” jobs, one must remember and take into account the opportunity cost of taxing the private sector.