Saturday, February 4, 2012

Krugman: "Genuinely Good News"

Ignoring the fact that just weeks ago Paul Krugman was telling us that we are "under depression conditions — which is what we have now", he is now forced to admit that the data suggest otherwise:
...the jobs report was definitely the best news we’ve had in a while...note that this month’s job gain roughly equals the average job gain during the Clinton years — all 8 of them. And unemployment at the start of that run was higher than it is now.

Still, genuinely good news. And I’m surprised that there wasn’t more action on Intrade; I’d say that Obama’s chances are looking significantly better.
Bottom line: Krugman has no clue as to how the economy works. His Keynesian theory is worthless in understanding the business cycle.

He just comments on the data in front of him.


  1. Kudos to you Robert!

    All one has to do is go through your archives and see in black & white that you have Krugman pegged.

    Next up should be Krugman's "surprise" at the coming consumer price increases :)

  2. And not to mention, the news ALWAYS gets better in an election year!

    Well, except for Carter, maybe, and look what happened to HIM!

  3. Depression conditions is when we have a large output gap. And we still do. The new data doesn't change that. Why do you keep on insisting this is some type of gotcha?

  4. I dont think one good month of jobs report (I'm not discounting that this is the best jobs report in 3yrs) discounts Keynesian theory.... at all... [or that we are FAR from a recovery (which we are) as Wenzel is implying]

  5. Krugman should read EPJ and then just spin it into his usual left wing drivel. So I guess, we won't be seeing to many of his drones stopping by anymore to tell us we are nuts. LOL Great call rw!