I was watching the Charlie Rose interview with Nobel Prize winner and Princeton professor Paul Krugman. It's amazing to see how out of touch Krugman is with the real world. Well, I should say...Krugman is out of touch with those people who don't want to see their hard earned money get wasted on Bridges to Nowhere.
If Paul Krugman were a dictator, he would run up government debt, print money and spend it on (paraphrasing) "almost anything, preferable something useful."
This is what's so wrong with Keynesian economists like Paul Krugman. They simply have no understanding of the term "rate of return on work invested." They only way to grow the economy is for people to grow their own income through investments. No one person can save the economy. We each need to invest in projects with high rates of return on investment. That's the only way for an economy to grow. We don't need 'smart' people like Paul Krugman or Ben Bernanke to print money and just to waste it on, perhaps well meaning projects, but ultimately projects that they themselves aren't willing to spend their money on.
Keynesians like Krugman, instead, want to waste money on stuff like "Cash for Clunkers," >99 weeks of unemployment payments, state stimulus packages (which they make it sound like it will go for hiring more teachers and police officers, but just as often goes to building bullet trains, wasteful solar panel rebates, and policy papers.)
But here's what really got me agitated! When Charlie Rose pressed Krugman on how he would pay for his wasteful government stimulus spending, Krugman replied, "Death panels and sales taxes." (His words exactly, not mine. Krugman repeated this multiple times for emphasis. And this is not the first time he's used this language.) Death panels really means reducing health care spending and sales taxes is self-explanatory. I don't even know how to respond to these comments from Krugman. I hope most people are smart enough to understand that there will be long-term pain if we try to stimulate the economy again by printing money and wastefully spending it, or by borrowing the money from China and wastefully spending it.
So, let me repeat just for emphasis. Paul Krugman thinks that the road to economic recovery is through government spending.
I think that the road to economic recovery is to invest your money in projects with as high of rate of return investment that you can achieve for the given level of risk that you are willing to accept.
So, here's what I'm going to do to help grow the economy. I'm going to work over-time so that I can earn more money and also invest more money in stock market index funds or power plant bonds. I suggest that you do the same or something similar. I know it sounds trite, but the only way to get the economy going full speed is if we all invest our time, money, work and energy wisely.