Krugman and Regime Uncertainty

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In a recent blog post, Paul Krugman has labeled what Robert Higgs has called "Regime Uncertainty" nothing less than a "scam." Now, when speaking of research by another economist, especially an economist like Higgs who has developed a good reputation over the years, "scam" is a fighting word, so one would think that Krugman would do more than just write another partisan screed, especially since he is a decorated academic economist.

Think again. As usual, Krugman writes a partisan screed complete with Krugman logic (an oxymoron):

Premise#1: "Regime Uncertainty" has no effect, since business investors only want to know if the economy will be strong before they invest;

Premise #2: Everyone knows that if the government spends a lot of money via printing and borrowing, the economy automatically will be strong;

Conclusion: Since Republicans have not supported everything President Obama has done, they are responsible for creating "uncertainty," even though "uncertainty" really has no effect. But we should blame Republicans, anyway, because they don't support Obama's Jobs Act, which everyone knows would bring back prosperity because Krugman says so.

So, there it is.