Friday, December 16, 2016

WOW A Lot of Correct Analysis from P. Krugman on the Macroeconomic Situation

In a post at his New York Times blog, he writes about the Macroeconomic Situation.

I don't agree with everything he has written in the post but there are two juicy sections that can be plucked which I agree there is a  lot I agree with:
At this point, the evidence does suggest that we’re close to full employment...wage growth has accelerated, and the quit rate is back more or less to pre-crisis levels, suggesting that workers feel pretty good about job prospects.
 Trump deficits won’t actually do much to boost growth, because rates will rise and there will be lots of crowding out. 


  1. Of course. Krugman is a brand new man since Hillary lost. But this has nothing to do with reality. If Hillary had won, the economy would surely need increased aggregate demand. This is especially true since Trump is calling for the exact fiscal policy that Krugman has called for. This position from Krugman both improves the legacy of Obama and thwarts Trump fiscal policy at the same time.

    Krugman is a genius.

    1. Would a genius say this:

      in short, we need to replace the NASDAQ bubble with a housing bubble

  2. The thing about Krugman is he writes from a political point of view rather than a philosophy. Right or wrong, good or bad, truth or lie does not matter. What matters is what will enhance the political power he supports: in his case it is the left.

    So even though he typically calls for more spending, the "Donald's" spending does not increase the power structure he supports, therefore the truth in this case, is worth writing about as it discounts the "Donald's" political base.