Shortly after last week’s earthquake, a Google+ profile purporting to be economist Paul Krugman updated with a statement that stated that had the trembler caused more damage it would have been beneficial to the economy. As it would turn out, the Google+ profile was phony. That being said, Krugman himself has very little to be upset about. The parody statement is 100% consistent with previous statements Krugman has made as well as Keynesian economic theory in general.
As we’re now seeing, Advanced Krugmanomics, or acknowledging the supposed economic silver lining in mass destruction, is now creeping into the mainstream. On MSNBC’s Morning Joe, Mike Barnicle, who has a doctorate in Advanced Krugmanomics, is now getting in on the action by asking North Carolina Governor Beverly Perdue if destruction caused by Hurricane Irene will act to stimulate economic activity and thus, in the end, be beneficial for the North Carolina economy.
Hey, it worked well for New Orleans, which became an economic and social utopia after it was devastated by hurricane Katrina, right?