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Monday, August 09, 2010

Krugman on "idle money"

I am glad that Krugman is taking notice of the "crumbling of America" - I pointed out the paved-road-to-gravel-road phenomonon a few weeks ago. The turning out the lights in Colorado Springs is eerily familiar to those who have read (and probably should re-read) Atlas Shrugged.

However, even Paul Krugman can't believe this statement from his latest tirade:

...when we give millionaires more money instead, there's a good chance that most of that money will just sit idle.

What? Millionaires just put the money in their mattresses and call it a day? Surely our Nobel winner doesn't REALLY think that - he is just piping off with political rhetoric, right? Man, I hope so.

And what if the millionaires put their money in their mattresses? Why does Krugman think he or the government (which is the rest of us) have the right to take the money and use it in other ways?

Op-Ed Columnist - America Goes Dark - NYTimes.com

It's pretty well documented that businesses are (stashing away) saving more cash, and that banks are (hoarding) holding more reserves recently than they had. Surely a well-trained economist knows the difference between paper investments and actual physical investment expenditures? ;)
N.B. Blogger won't allow the "strike" tag. Oh well.
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