Krugman: More Government Spending Would Revive Economy in Two Years

January 16, 2013 - 11:09 AM

Paul Krugman

Liberal economist and New York Times columnist Paul Krugman (AP Photo)

(CNSNews.com) – Paul Krugman, a liberal economist and New York Times columnist, said increased government spending is key to economic recovery.

During an interview on Friday on “Moyers & Company,” on PBS, Bill Moyers asked, “And you argue that this could actually be solved in two years?”

Krugman, a Nobel prize winner, answered that it was a matter for more government spending.

“That's right, and that's not a number plucked out of thin air,” Krugman said. “That's a guess at how long it would take to get a serious spending program going, and we could actually make a lot of difference in it even quicker than that, because the fact of the matter is far from having effective job creation program, we've actually been pulling back.

“We've seen state and local governments lay off hundreds of thousands of school teachers,” Krugman continued. “We've seen public investment in basic stuff like road repair cut way back. If we just went back to normal rates of filling potholes and normal rates of employment of school teachers that could be done in months.”