Some people who should know better believe wars and natural and man-made disasters are good for the economy.Let's follow the logic of this belief to its absurd conclusion: To jump-start our economy and put our millions of unemployed people back to work, we should use our military to destroy our cities!Just a few days ago, for instance, Paul Krugman of The New York Times - winner of the Nobel Prize in economics - wrote a column headlined "Meltdown Macroeconomics." He writes: "[G]overnment borrowing doesn't have to come at the expense of private investment, driving up interest rates; instead, it just mobilizes some of those desired but unrealized savings."And yes, this does mean that the nuclear catastrophe could end up being expansionary, if not for Japan then at least for the world as a whole. If this sounds crazy, well, liquidity-trap economics is like that - remember, World War II ended the Great Depression."Krugman seems to have a special belief in good...(Read Full Post)