Princeton’s Paul Krugman is a Keynesian. He is the Keynesian. He is the resident economist for the New York Times.
Economics teaches that there are no free lunches. Therefore, an economy can allocate scarce resources in two ways: by price competition or by government committees. Keynesianism seeks to find a middle ground. It wants allocation by “high bid wins” (auction), but also by government committee (bureaucracy). The correct word for allocation by bureaucracy is “rationing.” Keynesians never use this word. That is because it is accurate.
When you say “medical rationing,” think “death panels.”
In a recent speech at a synagogue, in a question and answer session, he made it clear that the present welfare state cannot long be financed by today’s taxes. Taxes must rise — maybe in 2025. Costs must be cut. Certain medical procedures must be curtailed. There must be death panels.
Yes, he really said the Sarah Palin phrase. It got a chuckle. This occurred around 2 minutes and 20 seconds into the video.
If you are flat on your back, you had better not be over age 60. You had better not be suffering from a chronic and possibly fatal illness.