Krugman is part of the problem
MMTers like to claim Krugman as one of their own, and why not? A Noble Prize, a Princeton tenureship, and a column in the NYTimes make him quite a catch. But fundamentally he is not MMT, he is a mainstream macroeconomist, and therefore part of the problem:
It comes down to the dual fiscal problem the U.S. economy faces: short-term, the government needs to do all it can to prop up spending; long-term, it needs to reduce the deficit. The latter concern means that it would be a terrible idea to make the high-end tax cuts permanent; that would be a huge drain on the public finances, serving no good purpose. But why not a temporary extension? Because it would do very little to promote spending.The only reason to reduce the Federal deficit, long term or short term, is to control aggregate demand if there is too much inflation. That does not exist now, and given how overleveraged and underutilized the non-Govt sector is, I don't see it appearing too much in the future either. Our recovery is L-shaped, and the US is turning Japanese (although with better equity performance, I believe).