[lbo-talk] Krugman on interest rate weirdness

Michael Pollak mpollak at panix.com
Mon Mar 24 16:07:44 PDT 2008


On Mon, 24 Mar 2008, MK wrote:


> Hey - I'm trying to understand the last sentence in the excerpt
> below....[Specially what does "they" refer to?]
>
>> What's up with Krugman lately? His NYT col today takes Obama to task
>> for claiming that the Iraq war has hurt the U.S. economy, pointing to
>> the stimulative effect of wars in the past. But earlier wars involved
>> huge procurements of tanks and boots; this one doesn't. Much of the
>> rise in military spending in the Bush years has gone to low-
>> multiplier R&D and contractors, not high-multiplier durable goods.
>> And they didn't help drive the oil price up over $100.

I'm pretty sure "they" refers to earlier wars.

Michael



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