Paul Krugman’s “Why Economics Failed” comes from a sheer over exuberance of the good times. Paul is pushing a string. Without the “my investment is more valuable than it it was yesterday impetus” the inflationary juices just do not juice up the entrepreneurial spirits. It isn’t as easy as declaring it is a lack of demand. Lack of demand is a lesson where my investment is not more valuable, its less valuable! That is a tough reality to overcome. The reticent reaction to economic stimulus is from a temporary lack of interest in investing that is not easily corrected.
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