Krugman: $700 billion stimulus ‘may not be enough’
Princeton University economic professor Paul Krugman believes the Democrats’ plan for a new $500-700 billion stimulus package may not be enough to turn the economy around.
“I’m actually worried this plan may be too small. This is an enormous crisis. You got to hit it with an enormous stimulus to buck the economy up. I’m still worrying they’re going to be a little bit short. You just have to put your notions of what is prudent aside. Being cautious is actually a very foolish thing right now.”
Krugman is critical of Bush administration plans to bailout Citigroup. “This is a lot of taxpayer risk in return for not much,” he said. “It looks like a very sweet deal for citigroup management, very sweetdeal for citigroup shareholders, to the extent they have anything left. Not very good for the taxpayer. This was not good.”
This video is from CBS’s The Early Show, broadcast Nov. 24, 2008.