Since You Asked, Scott
By Bryan Caplan
1. Sumnerian monetary policy. Seriously, but without the hat tip.
2. More fiscal stimulus.
3. Job subsidies and working sharing.
His rationale is political: Since politicians are too evil/stupid/cowardly to do #1 or #2, #3 is all we have left.* Scott Sumner’s got a typically great reply:
This is a foolish game to play. There is zero chance Congress would
spend enough money on these “third-best” options to make a dent in
unemployment. God only knows what his 4th best option is.
I’m willing to take a guess. Since Krugman’s largely forgotten his free-market labor economics, I fear that his 4th best option is going to be protectionism. If Krugman’s idol Keynes could warm up to protectionism during the Great Depression, why couldn’t Krugman do the same?
* Of course, if Krugman were truly a political animal, he wouldn’t
propose bold new ideas and then immediately insult them as
“third-best.” Dare I hope that the good Krugman could still make a comeback?