Krugman’s straw man of the day uses discussions about the impact of the iPhone 5 release on the economy to suggest we are all Keynesians, and that government should spend more money.
But all actions have costs. And Americans have decided that the cost of funding expansion of government influence, power, and corruption is so high, that government stimulus is even worse then continuing recession.
So, while Americans may understand, within reason, the value of stimulus. Unlike Keynesian economists, American’s also understand the cost of the expansionist state. And they have had quite enough of it.
Unlike certain Nobel laureates.