Friday, September 8, 2023

Krugman Now Giving Economic Advice to the CCP

Click here to read the original Cautious Optimism Facebook post with comments

The Cautious Optimism Correspondent for Economic Affairs and Other Egghead Stuff has found the silver bullet that will bury China's economic growth story for good: New York Times columnist Paul Krugman.

Krugman recommends China remedy their current slowdown with a retread of Japan's last three decades: a monstrous campaign of government debt-financed stimulus spending.

In case anyone doesn't remember how that turned out, Japan borrowed and spent so much money on public works projects and bridges to unpopulated islands that it went from the best fiscal position of any OECD country in 1990 to the worst by the 2010's with a national debt equaling 260% of GDP (the USA currently sits at 120%).

And what did they get for it? Three lost decades and counting... plus an enormous debt burden to boot.

Krugman also complains that to get their economy moving faster the Chinese need to stop acting so much like Republicans and more like communists.

Not that Republicans believe the state should be dictating to firms every nuance of their day-to-day operations to serve the Party's interests (that's Democrats actually) or canceling companies that won't spy on the domestic and foreign civilian populations (that's Democrats too), but at least Krugman is starting to openly show his true colors: communism is preferable to Ronald Reagan's policies.

So if you want to see China's economy slow down and stagnate for the next half century, write a letter to Xi Jinping's office begging him to pick up and read Krugman's column.

Read "Paul Krugman warns China is headed for a 'very nasty fall' as Xi Jinping sounds more like a Republican than a communist" at:

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