Zakaria and Krugman, Dumb and Dumber of the progressive pundit world, talk about important economic issues -- a faked alien invasion to get the economy going. Krugman digs a deeper hole every time he opens his mouth about our economy. This man won a Nobel Prize, but, then, so did Obama for "Peace".
Krugman, of course, is not suggesting a real faked alien invasion, but it's similar to demonizing some foreign nation so that we spend more and more money on defense. Hasn't this been done since the Cold War? Should we use 50% of our budget to build anti-alien spacecraft missiles? This would certainly help a certain portion of the public who's working in the defense industry and maybe some peripheral businesses, but it would certainly misdirect capital from productive sources to un-productive sources, and how long would this campaign to build missiles last? Wouldn't we have a lot less capital available to produce what we actually need, like, say, food and medicine? Or would we simply borrow the money -- but this competition for limited funds crowds out someone and drives up interest rates.
What happens when we can no longer borrow money? We print it right? There are so many things wrong with Krugman's plan, such as drawing talented people away from the hi-tech industries to build missiles we don't need -- misdirecting capital into a defense bubble -- inflation -- higher gas prices as the dollar is devalued -- not replacing consumption with useful products but rather useless missiles -- the depression of other parts of the economy that are productive to inflate a false part of the economy that's not based on true demand -- concerns from other countries that our military buildup is really for imperialist purposes -- the false signals sent out to entrepreneurs and business managers -- the risk of hyper-inflation and economic collapse -- the crash that will follow the end of the inflated production.
A real economist (I'm not even a fake economist) can come up with other objections, but it doesn't take much to see that Krugman is in a Keynesian mania phase that might be hell on the downside -- I'm worried about him.