Krugman: Government Should Spend $600 Billion to Solve Economic Woes
Nobel Prize-winning NY Times columnist tells CNBC government should allocate 4 percent of GDP for 'stimulus.'
By Jeff Poor
Business & Media Institute
11/7/2008 3:38:55 PM
As President-elect Barack Obama sorts out his cabinet and determines who will guide policy through his administration, it’s probably a good thing New York Times columnist Paul Krugman isn’t on his short list.
Krugman appeared on CNBC’s Nov. 7 “Power Lunch” and assigned a price tag to the “progressive agenda” he proposed for Obama in his Nov. 7 New York Times column: $600 billion.
“I think we’re talking 4 percent of GDP or more,” Krugman told host Trish Regan. “We’re talking probably about something like a $600 billion package. We, you got to think big. This is not a case where you want to sort of inch up on the problem. You got to think big and it’s going to be scary.”