The ghost of John Maynard Keynes lives at Princeton University, where Paul Krugman continues his life’s work as the new prophet of the Keynesian Gospel. (One would hope that Krugman’s efforts would have the same rate of success of one trying to revive Zoroastrianism, but I’m afraid that the Nobel committee just gave Keynesianism a new lease on life.) Today, the Prophet tells us that the consumer is just not up to do doing the job: The long-feared capitulation of American consumers has arrived. According to Thursday’s G.D.P. report, real consumer spending fell at an annual rate of 3.1 percent … Continue reading More Keynesian Nonsense from Krugman