Finally, some evidence from Krugman

Paul Krugman (HT: Brad Delong, who cheers Krugman on) has been beating the drum for more government spending for a long time. And now he finally has the evidence that proves his point. The problem facing our economy isn't regime uncertainty or the dysfunctional housing market or the financial sector or government, generally. Nope. It's aggregate demand, the Achilles heel of capitalism:

I've said this before, but Catherine Rampell has a very nice chart making the point: if you ask businesses —...