When Krugman, the mouthpiece for the Fed, The UN and the Administration has to come out and say the new I-Phone will generate .05% of GDP growth? That is scary. Why? There is nothing else to talk about!
The entire sector must move, many sectors must move to generate economic growth, and this will only happen with a Laffer style economic program initiated that will counteract the socialist/Keynesian economic programs that have enveloped our economic programs.
The Keynesian theory works ok if you’re looking 30 days to 6 months out when tweaking a specific segment or financial instrument (mortgage back securities for example). However, history has proven that Keynes economic theories will never work in a supply side economy. JP Morgan, The media élite (Krugman) and our central bank are in a happy place right now and Krugman is the lap dog.
However, Curmudgeon, you are correct in saying that Krugman defines policy in many ways. He does as his Keynesian beliefs walk in lockstep with current massive government political philosophies and is exactly the reason we (all Americans) are scared (except the folks at JP and Krugman).
Why scared? The only people who benefit from total Keynesian economic philosophies put in place by a government are the Dictator who eventually comes to power (1933 Nazi Germany) or the Communist (1922 Lenin, USSR).
To even talk about 1 reconstituted product, by one company, that will move economic growth tells me that there is nothing to talk about anywhere in this world that is happening to spur economic growth.
This is by design, in my opinion, and should scare us all as more regulation is on the way to marginalize our economy.