Brooks vs. Krugman

Paul Krugman asserts the fiscal crisis in Europe was brought on by... wait for it... wait for it... NOT enough government spending.

That's seems to be Krugman's answer for everything; more, more, more government spending. When all you've got is a hammer, every problem looks like a nail.

His colleague David Brooks argues that what creates wealth and drives national prosperity are cultural habits like thrift, hard work and the willingness not to take something for nothing.

Why are nations like Germany and the U.S. rich? It’s not primarily because they possess natural resources — many nations have those. It’s primarily because of habits, values and social capital.

It’s because many people in these countries, as Arthur Brooks of the American Enterprise Institute has noted, believe in a simple moral formula: effort should lead to reward as often as possible.

People who work hard and play by the rules should have a fair shot at prosperity. Money should go to people on the basis of merit and enterprise. Self-control should be rewarded while laziness and self-indulgence should not. Community institutions should nurture responsibility and fairness.

This ethos is not an immutable genetic property, which can blithely be taken for granted. It’s a precious social construct, which can be undermined and degraded.