The View From 1776
Saturday, March 06, 2010
Krugman vs Krugman
New York Times propagandist Paul Krugman has been wrong so often and has reversed himself so many times he can’t remember what he last said.
The Wall Street Journal’s March 5, 2010, edition, in its Best of the Web feature, carries an interesting look at the contradictory opinions expressed by Mr. Krugman:
Former Enron adviser Paul Krugman takes note in his New York Times column of what he calls “the incredible gap that has opened up between the parties”:
Today, Democrats and Republicans live in different universes, both intellectually and morally.
“What Democrats believe,” he says “is what textbook economics says”: But that’s not how Republicans see it. Here’s what Senator Jon Kyl of Arizona, the second-ranking Republican in the Senate, had to say when defending Mr. Bunning’s position (although not joining his blockade): unemployment relief “doesn’t create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.”
Krugman scoffs: “To me, that’s a bizarre point of view—but then, I don’t live in Mr. Kyl’s universe.”
What does textbook economics have to say about this question? Here is a passage from a textbook called Macroeconomics:
Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. .