On Fri, Jun 4, 2010 at 4:16 PM, David B. Shemano <[email protected]> wrote: > You keep evading my question. I will stipulate for purposes of discussion > that PK is right that a 100% debt level is better for the economy than the > present debt level. But if PK knows that 100% is better, he should be able > to tell me whether 110% is better, whether 120% is better, etc. -- he should > be able to tell me at what point the percentage would be too high. I don't > understand how PK can know that 100% is better if he does not know at what > point X% is too high. >
If you had bothered to actually read Krugman he clearly answers your question several times in his blogs. In his estimate, the so-called output gap is around $2T. That'd suggest a stimulus of roughly the same size to being employment up to some decent level. Krugman has stated that he supports this level of deficit spending and believes the corresponding debt levels are easily manageable. Do the math for what that'd mean for the debt/GDP percentages (approx. +15% or so). I am not really sure how it helps you to have those numbers, but there you go anyway. Now what? -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
