Government has no mechanism for sufficiency

Economist @paulkrugman said the federal government’s fiscal response to the coronavirus pandemic has been “way insufficient” so far.

For which Krugman has no economic explanation.

The only sufficiency government has is to spread the costs fairly, ex post.  That means default, there is no return to agreed fairness ex post. The reason for a failure of normalcy is the normal tendency of the house to pile on to the Senate.  The piling on erases any return path, the normal cost structure fails.

Take pensions.  They are a state decision, the federal government has no fair method to select the bailout distribution, except proportional grants to state capitals.  But that is ruled out, so far, by the House.

And no one in their right mind will assign Krugman the task of apportioning the costs, we are still stuck with insufficiency, always a problem in the Senate/House mismatch.

In terms of TOE, the temperature is so cold there is only one partition, government, we have become a blob of dots, Brownian motion.