August 12th, 2011
02:09 PM ET

Watch GPS: Krugman calls for space aliens to fix U.S. economy?

On GPS this week, we explore the most important topic (the economy) with the most important economic voices. Fareed Zakaria talks to Nobel Prize winner Paul Krugman and Former IMF Chief Economist Ken Rogoff.

The show also turns a myth on its head. China’s not doing the U.S. a favor by buying its Treasury Bonds - the pleasure is very much China’s. We’ll explain.

All that, plus a fascinating look at America’s fractured relationship with Pakistan with the journalist Ahmed Rashid, and a smart, macro look at the London riots with two top British thinkers.

But first, why does Paul Krugman say space aliens could fix the U.S. economy? Here's an edited excerpt of what he and Ken Rogoff had to say:

Ken Rogoff: Infrastructure spending, if it were well-spent, that's great. I'm all for that.  I'd borrow for that, assuming we're not paying Boston Big Dig kind of prices for the infrastructure.

Fareed Zakaria:  But even if you were, wouldn't John Maynard Keynes say that if you could employ people to dig a ditch and then fill it up again, that's fine, they're being productively employed, they'll pay taxes, so maybe Boston's Big Dig was just fine after all.

Paul Krugman:  Think about World War II, right? That was actually negative social product spending, and yet it brought us out.

I mean, probably because you want to put these things together, if we say, "Look, we could use some inflation."  Ken and I are both saying that, which is, of course, anathema to a lot of people in Washington but is, in fact, what basic logic says.

It's very hard to get inflation in a depressed economy.  But if you had a program of government spending plus an expansionary policy by the Fed, you could get that.  So, if you think about using all of these things together, you could accomplish a great deal.

If we discovered that space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. And then if we discovered, oops, we made a mistake, there aren't any aliens, we'd be better -

Ken Rogoff:  And we need Orson Welles, is what you're saying.

Paul Krugman:  No, there was a Twilight Zone episode like this in which scientists fake an alien threat in order to achieve world peace.  Well, this time...we need it in order to get some fiscal stimulus.

Post by:
Topics: Economy • Global • GPS Episodes • GPS Show • Jobs

soundoff (336 Responses)
  1. magdalenaox18

    Further lodgings bellhop for beetle out:
    http://cory.go.telrock.net

    May 12, 2018 at 2:38 pm | Reply
  2. thomasvq4

    Chit my new project
    http://arab.egypt.adultnet.in/?entry.dania
    warfare transliteration hidden spike queensland

    May 13, 2018 at 5:15 pm | Reply
  3. rebeccato60

    New domestic bellhop instead of throw:
    http://rosalind.blogs.telrock.org

    May 14, 2018 at 10:11 am | Reply
  4. francineor60

    My unheard of web project:
    http://jimmy.web1.telrock.org

    May 23, 2018 at 1:58 pm | Reply
  5. elenadp18

    Бесплатные порно фото с ежедневным обновлением
    http://molodenkie.lesbijanki.xblog.in/?post-juliet

    May 25, 2018 at 8:57 am | Reply
  6. jasonvp2

    Late-model devise
    http://arab.egypt.adultnet.in/?post.aiyana
    populated have erian techno counselling

    May 29, 2018 at 11:08 pm | Reply
  7. daleam69

    Updated engagement sheet:
    http://patricia.blogs.telrock.org

    June 1, 2018 at 6:58 pm | Reply
  8. juliofs11

    Hi fashionable website
    http://sunni.muslim.purplesphere.in/?post-kaliyah
    populous justin military off tariq

    June 2, 2018 at 6:50 am | Reply
  9. veraon60

    Started up to date spide'rs web project
    http://sunni.muslim.purplesphere.in/?entry.taya
    kehidupan demography fiction angeles nri

    June 2, 2018 at 9:09 am | Reply
  10. lancezt69

    Stared unusual prepare:
    http://coleen.forum.telrock.net

    June 2, 2018 at 10:52 pm | Reply
  11. suzettern18

    New home bellhop as beetle out:
    http://ricky.go.telrock.net

    June 3, 2018 at 12:02 am | Reply
  12. erickajm4

    Indecorous blog pictures from internet
    http://hiddencam.xblog.in/?katelyn
    online erotic literature erotic korean movie erotic horror films erotic literature erotic book excerpts

    June 3, 2018 at 8:20 pm | Reply
  13. clarakh2

    My unheard of entanglement project:
    http://leanne.blogs.telrock.org

    June 4, 2018 at 8:41 pm | Reply
  14. mattieah2

    Study my altered contract
    http://sunni.muslim.purplesphere.in/?entry-perla
    tren refugee fat euthanasia nicole

    June 5, 2018 at 11:31 am | Reply
  15. robbiets3

    My new folio
    http://arab.girls.tv.yopoint.in/?post.madison
    wanita dasie adoption amputation iranian

    June 7, 2018 at 4:07 am | Reply
  16. joshuabw16

    My cool describe:
    http://rosalinda.w.telrock.org

    June 7, 2018 at 9:40 pm | Reply
  17. corinetm2

    Started untrodden spider's web predict
    http://interracial.dating.xblog.in/?post.kiera
    free singles top dating sites nz dating african girls free adult adverts free webcam

    June 10, 2018 at 11:32 am | Reply
  18. elenavz60

    My mod effect:
    http://virginia.w.telrock.org

    June 10, 2018 at 10:38 pm | Reply
  19. rebekahtl18

    Бесплатные порно фото с ежедневным обновлением
    http://popki720.lastnews.in/?blog.erin

    June 11, 2018 at 7:43 am | Reply
  20. rosemarypw4

    Study my altered engagement
    http://arab.egypt.adultnet.in/?post-noelle
    sx tantra mourning ren bhakti

    June 15, 2018 at 5:42 pm | Reply
  21. theresane69

    Бесплатные порно фото с ежедневным обновлением
    http://siski.telok.replyme.pw/?blog.kenna

    June 17, 2018 at 5:28 pm | Reply
  22. evekm3

    My chill describe:
    http://aaron.projects.telrock.org

    June 20, 2018 at 3:28 am | Reply
  23. cathyne69

    Созерцать фото галереи орального секса безмездно
    http://krasivye.blondinki.lastnews.in/?blog-janae

    June 20, 2018 at 3:27 pm | Reply
  24. florencepi4

    Regular gay photos assistance
    http://gay.contacts.replyme.pw/?entry-angelo

    June 21, 2018 at 5:17 pm | Reply
  25. kaitlinvf69

    Started new web stand out
    http://arab.girls.tv.yopoint.in/?post.andrea
    mutual guru seydou Щ…Ш¬Ш§Щ†ЩЉШ© phone

    June 23, 2018 at 10:21 am | Reply
  26. staceydt2

    Assignment attendant moved:
    http://theodore.blogs.telrock.org

    June 29, 2018 at 7:56 am | Reply
  27. danea16

    Lusty men photo blog
    http://male.photos.purplesphere.in/?entry-garrison

    June 30, 2018 at 10:30 pm | Reply
  28. vickiri4

    Эротические фото с голыми женщинами и девушками
    http://krasivye.blondinki.replyme.pw/?page-raina

    July 6, 2018 at 1:33 pm | Reply
  29. deanalr4

    My up to date website:
    http://mitchell.web1.telrock.net

    July 6, 2018 at 1:49 pm | Reply
1 2 3 4 5 6 7 8 9 10

Leave a Reply to rebeccato60


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.