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As a man of the Left, Krugman thinks economy is a zero sum game. If there's a housing boom, there must a bust in another part of the economy. If there's a housing bust, there must be a rise in some other sector. One sector or nation thrives AT THE EXPENSE OF another. The ONLY way all of economy can thrive together is through the intervention via massive government planning and spending, which is why he is anti-free markets. He doesn't understand that in free market economics, all boats can rise or fall together.
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