Required reading

I've always thought that Paul Krugman made a lot of sense when it comes to economics (well, he is a Noble prize winner after all). But his column in today's New York Times is simply brilliant. It explains a series of complex issues in ways anyone can understand. And it clearly explains what is wrong with much that is being said by so-called conservatives in this country.

Read it here.

Comments

[Jeff Shattuck]

Can't resist! I hate Krugman, he's a pot calling the kettle black (he's as ideological as anyone else). What his NYT piece misses is that the problems in Europe are not just about debt, but also about the productivity of certain member countries. Italy, south of Rome, has shit productivity, so does Greece. Sweden, on the other hand, does okay, which is why it is better able to support its welfare state (in the short term). As for the Euro, I lived in Europe just before it got implemented and it was, in essence, an admission that Germany was the only country managing its currency well so why not make the Bundesbank the European Central Bank? Overnight, any cost advantages other European countries had over Germany went away and they either had to get busy and raise productivity closer to Germany's level (no easy task) or drag down Europe to their level. Looks like the latter happened. And if Krugman really believes that printing money is a good idea, wonder what he thinks about Zimbabwe! By the way, I'm no economist -- I'm an English major! -- but I have read a few books and thought about the subject for eons, which probably doesn't mean a thing!

[Dave]

I think you miss the point, at least in part.

The main point is not whether his assessment of Europe is right or wrong (as a Eurooean I happen to think he's right) but that Republicans here aren't getting it right either.

Like him or hate him, his description of what the Right is saying about Europe, about what we can learn from what is happening there, is spot on. The speeches are out there to be quoted.

And if people believe what the Repubs are saying, austerity is the next step. And as he says, correctly, austerity has never worked. Which is why the UK is up shit creek without a paddle despite not being dragged down by the Euro.

Agree with all his beliefs or not, he's a smart guy who has a valid comment here, not on Europe but on the US. It's a political statement as much as it is an economic one - and I agree with him.

[Jeff Shattuck]

I don't think his arguments are right. I think paying down debt is a good idea. I fully understand that concept of the infinite state but I also fully disagree with it and I think history is on my side. No, for me, Krugman is wrong. F. A. Hayek is more my speed.