This seems to be Krugman's theme of the moment: bluntly derail the common misconceptions that many hold comfortably at the center of their fiscal solution to our economy. What Krugman has said, time and time again, is that austerity measures don't work, that cutting creates jobs and growth, and that those who believe this are either duped or lying.
The fact is, the solutions being put forth in our own Congress are failures. We can't cut our way out of this, because that doesn't help anyone except the wealthiest people. We can't flatten out the tax, or turn it into a regressive tax, because again it benefits the weatlhy. But perhaps even more importantly, these solutions don't actually help any of the problems we have in this country. They aren't directly addressing jobs (actually, they harm jobs since they would cut thousands of positions from the federal government). They don't directly address Wall St. greed and financial mismanagement; actually, in all seriousness, they essentially give Wall St. a pass by cutting government oversight so that it cannot continue to stop reckless spending. It does not directly impact housing market stability or the wealth gap; in fact, it makes these things worse due to the aforementioned giveaway to the wealthy.
We needed a comprehensive, progressive solution, but we're left with something that will simply harm us. The GOP cares more about blaming failure on Obama than doing something to prevent failure. They look like fussy schoolchildren, screaming about not getting their way, but demanding more when they do get what they want. They don't the country to succeed at anything until Obama is out of office. After that, they can use his "failed" presidency as a reason for passing all their insane ideas into law. They don't want compromise, they want domination. So far, they've been getting it.