Remember, this is the same Paul Krugman who mused, a few weeks ago, that what this country really needs is an invasion by space aliens. Preparations for an intergalactic war would mean that "this slump would be over in 18 months," he suggested.
That is because Krugman and other Keynesians believe that what is troubling this economy is a lack of demand. Anything, therefore, that causes people — or governments — to buy more things is good, be it a disaster, space invasion, or a government jobs program. Keynes himself famously noted that the government could create employment during a recession simply by paying some people to dig holes and other people to fill them in. It's only logical, therefore, that we should welcome at least the economic effects of destruction, so we can create jobs by rebuilding.
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