Earthquakes, hurricanes, floods — Paul Krugman should be ecstatic. Not about the suffering and loss of life, obviously, but because the cleanup and rebuilding should provide exactly the sort of Keynesian stimulus that Krugman believes this economy needs. There is now an increased demand for home construction, flood remediation, and auto repair.
Remember, this is the same Paul Krugman who mused, a few weeks ago, that what this country really needs is an invasion by space aliens. Preparations for an intergalactic war would mean that “this slump would be over in 18 months,” he suggested.
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