FAST FIVE: Krugman's Delusion: The Difference Of Theory Versus Reality
The chart below shows the gap between wages, savings, and living costs through the end of 2020.
But such also corresponds with the tipping point to where debts and deficits became corrosive to economic growth.
I am not sure how Krugman can conclude that debt at current levels has no consequence. Such is particularly an issue where it now takes more than $5 in debt to create $1 of economic growth.
After 12-years of “Zero Interest Rate Policies,” and successive rounds of trillions of dollars in monetary interventions, there has been little to show for it.
The only thing we can attribute to 12-years of the most progressive and aggressive monetary experiments in history is a massive surge in the “wealth gap.” The top 10% of income earners own ~90% of the entirety of equity assets.