KRUGMAN: It Looks Like The Deficit Wars Are Over, And The Economy Is Entering A 'Virtuous Circle'

[xchrom]

http://www.businessinsider.com/paul-krugman-on-the-us-economy-2013-2

This week we were fortunate enough to have economist Paul Krugman in for a discussion on politics, the state of the economy, technology, and inequality.

In this first section, I asked him if he thought the "deficit wars" were over... have the days of politicians trying to urgently enact spending cuts basically come to an end. "It looks like it," says Krugman.

There's still some lingering issues, and there are still a lot of people who haven't dropped the rhetoric, but with the GOP caving on the debt ceiling, the big issues have mostly gone away.

As for the economy, he sees the likely emergence of a "virtuous circle" forming, with more homes being built (because we're "underhoused&quot , home prices rising, people spending more, etc.




Read more: http://www.businessinsider.com/paul-krugman-on-the-us-economy-2013-2#ixzz2JkxjaHYO

[CTyankee]

1. I saw a hopeful sign on Morning Joe Friday. "Austerity" is now a bad word.

Funny how Scar is backtracking on the issue of "government spending." He's still mocking Paul Krugman as being a marginal figure on the outskirts of the mainstream, but Krugman's appearance last week on the show marked a turning point, IMO. Or it least I hope so. I also noted that Ezra Klein was once again on the show, after what appeared to be a selective ostracizing (briefly). Hmmm....