Paul Krugman changes his story on what makes a good stimulus

It used to be that Krugman thought money to state and local governments was the best stimulus.

Now the centrists have shaved off $86 billion in spending — much of it among the most effective and most needed parts of the plan. In particular, aid to state governments, which are in desperate straits, is both fast — because it prevents spending cuts rather than having to start up new projects — and effective, because it would in fact be spent; plus state and local governments are cutting back on essentials, so the social value of this spending would be high. . . .

Without admitting any change in his views, now this week he claims: "This aid may have mitigated the slump, but it wasn’t the kind of job-creation program we could and should have had."

There is no explanation for or even acknowledgement of this change.

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