Krugman is confused as to why so much technological growth in recent years has not led to more economic growth. The answer lies in the fact that true technological change requires funding — and thus real savings — to be implemented.
The Fed — and many economists everywhere — believe that giving more people jobs will drive more economic growth. But more employment is useless for economic growth if employed persons are not contributing to real wealth and capital accumulation.
Orders in capital goods have been going up since 2009. Normally, capital goods purchases suggest economic growth, but if the orders are a result of easy money, the purchases point not to wealth creation, but to a bubble.