Paul Krugman: The US economy is in a ‘medically induced coma’ and needs massive fiscal aid to weather the coronavirus

Major parts of the US economy have been suspended to combat the spread of the novel coronavirus, and a surge in government spending is essential to offset the slowdown, Paul Krugman said on Thursday.”We want massive, debt-financed disaster relief while the economy is in its medically induced coma,” the Nobel Memorial Prize-winning economist and New…

Paul Krugman: The US economy is in a ‘medically induced coma’ and needs massive fiscal aid to weather the coronavirus

Major parts of the US economy have been suspended to combat the spread of the novel coronavirus, and a surge in government spending is essential to offset the slowdown, Paul Krugman said on Thursday.”We want massive, debt-financed disaster relief while the economy is in its medically induced coma,” the Nobel Memorial Prize-winning economist and New York Times columnist said in a Twitter thread.Krugman suggested the government could source funding from essential industries that are still active, as workers and companies are saving instead of spending.Visit Business Insider’s homepage for more stories.

Large swaths of the US economy have stalled as the novel coronavirus rages across the nation, and a government-spending boom is needed to prevent further pain, Paul Krugman said on Tuesday.”This isn’t a conventional recession; it’s more like a medically induced coma, where you temporarily shut down much of the brain’s activity to give it a chance to heal,” the Nobel Memorial Prize-winning economist and New York Times col
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