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2010-06-25 Economy

Paul Krugman Now Laughingstock On Two Continents

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Posted by g(r)omgoru 2010-06-25 03:01|| || Front Page|| [1 views ] Top

#1 Who is Paul Krugman and why is anything he writes or speaks considered worthy of any one's time?

Posted by WolfDog 2010-06-25 11:51|| 2010-06-25 11:51|| Front Page Top

#2 Prof. Krugman is an expert on the finance of international trade, and did ground-breaking work in that area of economics. His work is correctly celebrated for its usefulness.

He then made the mistake that many of us academics make: thinking that because he was an expert in one area, he had lots of things to say about areas he hadn't studied in depth.

We academics are suckers for that.

Fortunately for me and unfortunately for him, he got a gig at the NYT, and I didn't. This way I don't embarrass myself as publicly as he does.

Posted by Steve White 2010-06-25 13:09|| 2010-06-25 13:09|| Front Page Top

#3 The failure is obvious to working people. It's obvious to unemployed people. It's obvious to kindergarteners, to dogs and cats.

This is one of those cases where economic reality is so blindingly clear that economists become redundant.

We had an economy built on hundreds of millions of people here and in Europe buying stuff they didn't need with money they didn't have.

Result: debts that cannot be paid by this generation with the curernt standard of household and government spending.

Solution: reduce the current level of household and government spending so that the debts can be repaid.

Alternative: rolling bankruptcies across nations, states, localities; civil unrest; a collapse of credit and lending generally.

IOW, TINA. The only option is for the global economy to re-set at a lower level of consumer and government spending. That is what is happening now, and must continue to happen. As the man says, ordinary folks can understand this blindingly obvious dynamic.

Posted by lex 2010-06-25 13:23|| 2010-06-25 13:23|| Front Page Top

#4 Another prob for Dr. Krugman is that, unlike the vast majority of economists, he combines strong views with an unfailingly sarcastic and snide manner. Which is charming when it's directed at your foes (eg Chimpy BusHitler), but extremely annoying when directed at one's friends, eg European politicians.

Maybe now the Euros will start to see why we non-Koolaid drinkers in the US have been so resistant to The One's charms and his worshippers' arguments.

Posted by lex 2010-06-25 13:56|| 2010-06-25 13:56|| Front Page Top

#5 Why does everyone forget the denizens of this continent? So make that three continents.

Posted by tipper 2010-06-25 17:24|| 2010-06-25 17:24|| Front Page Top

#6 Krugman reminds me of a few conservatives (like Neal Covuto) who said all was well, all was well, when Bush took office and things were looking grim to everyone. There is a point where public perceptions create the reality. If everyone thinks we're screwed we are. If you can convince enough all is well things might not get so bad. I believe Covuto was trying to convince people hoping to avoid the worst (I could be wrong of course, I'm not a mind reader) and perhaps Krugman is doing the same.

Posted by rjschwarz 2010-06-25 18:44|| 2010-06-25 18:44|| Front Page Top

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