Generally speaking, we try to avoid mentioning shrill leftist New York Times columnist Paul Krugman, not because he makes no absurd statements but because he makes so many of them. An exception to this rule must be made, however, thanks to an excellent piece by economist Robert P. Murphy in the American Conservative headlined “Heads Krugman Wins, Tails ‘Austerity’ Loses.”
In the past several years, during and following the recent “sequester” debate the leftist economist predicted utter disaster if it went through. According to Krugman, America was almost guaranteed to enter another recession on account of the supposed fact that miniscule cuts in the rate of the federal budget’s growth would have an anti-stimulative effect on the economy. A funny thing happened on the way to Armegeddon though: the U.S. economy actually seems to be doing better since the sequester went into effect.
