Paul Krugman has long derided the "confidence fairy": a notion that government cuts will somehow spark more consumers and investors to buy. We're seeing another version of that fairy now, after learning that Mitt Romney, at his infamous "47%" fundraiser, also claimed that his election would offer an economic lift "without actually doing anything," thanks to "optimism about the future of the country." Instead of offering much in the way of policy specifics, Romney is "declaring, in effect, 'I am the confidence fairy!'" Krugman writes in the New York Times.
Romney's wrong: For one thing, "business investment has actually recovered fairly strongly since the official recession ended." What's more, as the election has recently appeared to turn in President Obama's favor, "markets are up, not down, with major stock indexes hitting their highest levels since the economic downturn began." Of course, "Romney’s whole campaign has been based on the premise that he can become president simply by not being Barack Obama. Why shouldn’t he believe that he can fix the economy the same way?" Click for Krugman's full column, or over at the Washington Post, Ezra Klein breaks down Romney's tax plan and finds it would raise taxes on those he defines as middle-income. (Read more Mitt Romney stories.)