Well, when the country is willing to put off consumption (ration cards, etc) and accept a lower standard of living, your economy can do wonders. China is a great example of the positive effects of delayed/repressed consumption. I’m sure a strong sense of nationalism makes it easier for the benevolent overlords to brainwash the masses.
As far as Krugman goes, he was roundly debunked by Hazlitt in 1946 and , by extension, Bastiat in 1850. If that wasn’t enough Hazlitt REALLY ripped Krugman a new one again in 1959.