Both the US and Europe are loath to acknowledge the facts on the ground. Governments in the US and Europe have, for half a century, pushed entitlement programs, erected massive regulatory edifices, and sold bonds to finance what taxpayers will not and cannot pay for. Now what?
You still see calls for politicians to act. Haven't they done enough?
When will the press and the politicians admit the cold hard truth. The policies enacted in Europe and the US are not affordable and are pushing their economies into permanent economic stagnation. The Krugman view that all one needs is a new dose of massive government spending has been tried by every country in the Western world. That it failed miserably spurs Krugman on to demand more of the same. Krugman is comfortable. He has a job. This is all "academic" to him. And, he's having fun to boot.
But the economic malaise that the world is stuck in is a direct result of the policies of Western governments for the past half century. Sticking your head in the sand is not the route to intelligent policy. It is time to admit failure.
Only free markets provide economic growth. Shutting down free markets in Western countries has lead to what we are now observing. Pretending that politicians can "fix" this so it all works is ridiculous.