This nine-minute British video of Krugman arguing with a British venture capitalist and a conservative Member of Parliament makes most of the same points as Nick Hanauer’s TED lecture on income inequality. But Krugman is arguing with two Brits who are spouting Heritage Foundation talking points, which I find somewhat shocking. For no good reason, I expected people with British accents to be much smarter than that. The full nine-minute video is here. I recommend it.
What they seem unable to grasp is that when an economy gets shut down, somebody has to prime the pump to get it flowing again. By definition, that has to be the government, since they have the authority to print money and the ability to borrow money at the lowest possible interest rates. The financier argues that what is really needed is smaller government and Krugman all but accuses him of following the Shock Doctrine, which is exactly what he was trying to do, but he is so imbued with this smaller government doctrine that he is totally unaware of his own insincerity.