Don Boudreaux fisks Paul Krugmann for arguing that the stimulus was too small.
Krugman’s opinion piece is nothing but a piece of ideology-driven twaddle. First of all, the stimulus was only passed a month ago and most of it won’t kick in until 2010. How can he possibly know that it’s not working? He doesn’t. He just wants more spending.
Second, is Krugman seriously arguing that the Keynsian economic multiplier is that non-linear? That it is essentially zero until it reaches a critical mass?
They don’t make Nobel Prize winners like they used to.