Keynes and Krugman are walking down the street and see dog droppings.
Keynes says to Krugman: “I’ll pay you $20,000 to eat those.”
Krugman thinks about it, decides he really wants a …new car, and eats the droppings.
They continue walking, then Krugman sees some other dog’s droppings up ahead and says to Keynes: “Same deal: I’ll pay you $20,000 to eat that.”
Keynes didn’t expect Krugman to take him up on his bet earlier, and he really needs the money, so he agrees.
Then Krugman says to Keynes: “We both have the same amount of money as before, but we both ate a lot of s**t.”
Keynes replies: “Yeah, but there was $40,000 in stimulus to the national GDP.”
As Homer Simpson would say, “It’s funny because it’s true (that Keynes and Krugman would call their eating of s**t stimulus)”. Same goes for anybody that believes that natural disasters are good for the economy.