Borrowing to make things worse

Paul Krugman writes column after column in the New York Times arguing the current worldwide depression is due to an overall general lack of "demand," as opposed to structural imbalances in the economy. Thus, he argues, the way to "cure" the problem is for the government to throw buckets of newly printed money at it and magically things will turn around.

It is thinking like this used to justify Bill English the Greek’s borrowing of one-hundred million dollars a week.

But it’s not only wrong, it’s destructively wrong.