This is not even to address the insurance question. When Krugman and other Keynesians talk about the insurance money to rebuild all that's been lost, they treat the insurance funds as "found money". But it is not free; the insurance companies will lose tremendous amounts of funds, and the reinsurance companies that insure them will also be out tremenous amouns of money. This value will have to be replaced with future productivity. That means higher insurance prices to make up the value of the payouts. However those costs are distributed they will have to be met.