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.

5 comments:

  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 :)

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  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!

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  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?

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  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]

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  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!

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