Krugman: Austerity -- Not More Debt -- Is The Danger

Nobel Prize-winning Economist Paul Krugman is continuing to say that the U.S. needs to spend more — not undertake austerity measures — to get out of its economic malaise. Krugman tells CBS This Morning that European countries now undertaking austerity measures are showing how austerity in such situations makes the economy worse without even making much progress on decreasing deficits, because austerity causes growth and revenue to shrink. “Austerity later,” he says. “Austerity when the economy has recovered — but not now.” He says it could take seven years for the economy to return to form if the U.S. continues its current tact, but just a year-and-a-half if it follows his advice, which includes more quantitative easing and raising permissible inflation expectations to 3% or 4%.