Krugman is part of the problem
This post totally sums up the problem with macroeconomics, and by extension, Krugman:
The simple fact is that we have a global excess supply of savings, which is doing terrible things to workers. The reasonable thing is to do something about it; it’s deeply unreasonable, and deeply irresponsible, to invent reasons not to act because you’re clinging to simplistic slogans.Got that? Households are groaning under impossible debt burdens, they've seen their income cut and their job prospects dim, and the problem is that they have too much money in the bank.