Krugman doesn't seem to grok Bastiat

Paul Krugman, Nobel laureate, doesn't seem to have heard of Bastiat and the Broken Window fallacy. Of course, if all the broken windows are in other countries, then I guess the Broken Window fallacy isn't so bad. Of course, we still ended up with all those dead guys.

Takeaway:

What saved the economy, and the New Deal, was the enormous public works project known as World War II, which finally provided a fiscal stimulus adequate to the economy's needs.

At some cost, one must add, to "external actors."