Archive for the 'Paul Krugman' Category

Krugman on Climate

Yesterday I blogged about Paul Krugman’s recent piece on climate control policy. The bottom line: After recovering from a shaky start, Krugman does a good job of laying out the issues and posing many (though not quite all) of the right questions. But I’m not sure he gets the answers right.

A few years ago, writing in Slate, I listed the key questions that the Al Gores of the world mostly fail to address or even acknowledge. (See also the discussion on pages 186-190 of The Big Questions.) Krugman (thankfully) is no Al Gore, and he does address most of these questions. Let’s see how he does with them.

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A Tale of Three Economists

Halfway through reading Paul Krugman’s New York Times piece on green economics, I had my snarky retort all ready to go. Then in the second half he went and got all reasonable on me. I still don’t buy his conclusions, but (sadly for readers who like fireworks), he’s not (at least in this instance) nuts.

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Weekend Roundup

Here at The Big Questions, we try to stand up for clear thinking and shame its enemies. This week, the enemies included Paul Krugman (writing on unemployment), the President of the United States (expounding on rising insurance premiums), a Washington Post columnist who seemed to forget that political reforms are supposed to serve a purpose, and that perpetual offender, the Conventional Wisdom, in its judgments about anti-gay agendas and fiscal responsibility.

Unless Krugman or someone like him offers an irresistible target tomorrow, I’ll see you next on Monday. Thanks for visiting.

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Krugman versus Krugman

I don’t usually post on Sundays, but this letter to the New York Times from the indispensable Don Boudreaux is too priceless to pass up.

Edited to add: I don’t always read Krugman’s column, but since Don’s link sent me there today, I can’t resist noting one more outrage: Krugman thinks that extending estate tax relief to the top .25% of estates is a policy “on behalf of” that .25% of the population, as opposed to a policy on behalf of everyone who benefits from capital accumulation, higher wages and economic growth.

Or more precisesly, he doesn’t think that. But he says it.

Click here to comment or read others’ comments.

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Wind Production

Once upon a time in America, whenever an administration spokesman spouted economic nonsense, you could rely on Paul Krugman for a sneer, a blast of outrage, and frequently an imputation of the basest motives. That time ended on approximately January 20, 2009. Today Krugman sleeps at the wheel while administration press spokesman Robert Gibbs spews forth the following:

I think it’s safe to say that for quite some time, when it came to building the solar panels and the wind towers and the wind turbines and a lot of the manufactured equipment for clean energy, we had a number of foreign countries that were doing much better in addressing that demand than we were. And as the President has said often, the type of demand for these components in manufacturing is only going to increase as we seek solutions to our energy problems.

And we have to ask ourselves as a country, are we going to create those jobs and create those components, or are we going to import those components from overseas? The President believes that we have an opportunity to lead the world in this type of manufacturing.

Nobody in the Bush administration ever displayed more economic ignorance, but Krugman was all over those guys every time they came close. Now he lets it slide. So let me do his job for him:

When the domestic demand for a product increases, the law of comparative advantage tells you to import more of it, not less. If it is in fact true that “the type of demand for these components is only going to increase” then American manufacturers might want to start producing them, but American consumers will certainly want to import more of them, and any attempt to circumvent that is a good way to make Americans poorer.

(For those following along in their economics textbooks: The world supply and demand for, say, wind turbines, must be more elastic than the domestic supply and demand, so a demand shift has a smaller effect on the world price than the autarkic domestic price and so must increase the foreign comparative advantage—or decrease the domestic comparative advantage, if any.)

For goodness’s sake—if Barack Obama or Robert Gibbs discovers that he really likes bananas on his Cheerios, is his first thought that he’d better start growing bananas, or is his first thought that he’d better figure out where to buy them? That’s the kind of question Paul Krugman used to ask. I miss him.

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The Top Ten

toptenSince everyone else is doing end-of-year retrospectives, I thought I’d chime in with a list of the ten most-commented-upon posts here at The Big Questions blog in the year 2009. Now, this blog is only two months old, but we’ve already had roughly 75 posts, so a top 10 list at this point is perhaps not too presumptuous.

Of course, the number of comments may be a poor predictor of post quality. So after I give you the Top Ten, I’ll point you to a few others that I think equally worthy.

That having been said, the Top Ten are:

Finally, here are a few of my favorites that didn’t make the Top Ten for comments, though that might just mean they were uncontroversial. Or to put this another way—maybe these posts were so perfect that readers thought they had little to add!

I’m taking New Year’s Day off. I’ll see you Saturday.

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From the Sierra Club

I am a proud member of the Sierra Club. No, not that Sierra Club; what I mean to say is that I am a regular reader of the parenting blog ChildWild, and a fan of its wise and charming proprietor Sierra Black. I am therefore delighted that Sierra seems to have become a regular reader and frequent commenter here on The Big Questions, and glad to see she’s sticking around despite frequent disagreements—much as I do on ChildWild.

Over on another thread, amidst a discussion of the case for free trade, Sierra threw me for a brief loop with an issue I’d never seen raised before, though I’ve since learned that it’s commonplace in certain corners of the Internet. I thought, then, that it might be worth responding in a separate post.

(I’ll admit too that another motive for the separate post was my conviction that I’d be able to slip in a perfect pun around the phrase “Sierra, Madre”—Madre, of course. meaning mother, and what with her running a parenting blog and all and—well, it’s bad enough to have to explain your jokes, but here I am trying to explain a joke I couldn’t even figure out how to make. But by the time I’d realized the pun was stillborn, I was already committed to this post.)

Here’s the relevant part of Sierra’s comment:

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Weekend Roundup

Lots of economics this week. We celebrated the Dr. Jekyll side of Paul Krugman (after having lamented his Dr. Hyde a week ago), explored the economics of college admissions and of work and play, and ended the week with a pop quiz. I’ll discuss some of the quiz answers in the near future.

Midweek we took a break to celebrate the centenary of the great Johnny Mercer.

To round out the week’s economics theme, here’s some recommended reading from around the web:

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Work and Play in Europe and America

My post about Paul Krugman’s loopy proposals on employment policy generated some considerable discussion about why Europeans work so much less than Americans do. Actually, there are two separate questions here:

  • Why do Europeans work less than Americans?
  • Who’s happier?

A few observations:

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Krugman: The Flip Side

Having recently bashed Paul Krugman, and in the full expectation that I’ll have occasion to bash him again, let me interject that Krugman is not just a first rate economist; he is also, when he wants to be, a superb economic communicator, with a long paper trail to prove it.

Take, for example his essay on the widespread failure of intellectuals to grasp Ricardo‘s theory of comparative advantage (the basis of the case for free trade). Instead of simply bemoaning the problem like the rest of us, Krugman makes a valiant and useful attempt to identify its root causes.

He starts with an analogy I’m also fond of (I’m not sure which of us has been using it longer): The theory of comparative advantage is like the theory of evolution by natural selection—to those who understand it, it is simple and compelling; yet non-experts can find it remarkably difficult to grasp.

In The Big Questions, I argue that this analogy ultimately breaks down: The theory of evolution is compelling largely because of the evidence that supports it, while Ricardo’s theory is compelling largely because of the logic that supports it. It’s not too surprising that a first-rate physicst or literary critic could be unfamiliar with a body of evidence, but it’s a little more unsettling when that same physicist or literary critic can’t follow a simple chain of logic.

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Weekend Roundup

Lots of good discussion on the blog this week. We began with a lively debate about the moral basis for antidiscrimination laws, which inspired some thoughtful commentary from the anonymous Rust Belt Philosopher, leading to an extended dialogue over on his blog. That dialogue has pretty much wound down, but I think that much of it is well worth reading even if it’s a little late to jump in.

Our thread on free trade was equally provocative. I’m sure I’ll soon return to some of the issues that came up near the end of the thread.

I offered a brain teaser to illustrate a key point from The Big Questions, namely that honest truthseekers can’t agree to disagree. I threw in a comparison to a related brain teaser about blue-eyed islanders, and my own brain teaser was quickly forgotten as the blue-eyed islanders became the focus of discussion. That was never my intention, but I’m thrilled that people found something interesting to discuss. Those who insist on controlling their threads’ directions should take up sewing, not blogging.

We also met the Ass Meat Research Group, and I said a few words about Paul Krugman. In entirely separate threads, of course.

See you all on Monday!

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Krugman to the Rescue

It’s always impressive to see one person excel in two widely disparate activities: a first-rate mathematician who’s also a world class mountaineer, or a titan of industry who conducts symphony orchestras on the side. But sometimes I think Paul Krugman is out to top them all, by excelling in two activities that are not just disparate but diametrically opposed: economics (for which he was awarded a well-deserved Nobel Prize) and obliviousness to the lessons of economics (for which he’s been awarded a column at the New York Times).

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Hot Air

Steve Levitt and Steve Dubner, the SuperFreakonomics guys (formerly the Freakonomics guys) have raised a lot of temperatures with their chapter on global warming. The backlash began with Paul Krugman, who in turn was neatly skewered by several authors, but most effectively by the journalist Ari Armstrong.

The critics have raised two objections that come perilously close to contradicting each other: First, Levitt and Dubner are accused of minimizing the problem. Second, they are accused of overeagerness to solve the problem, as opposed to, say, demonizing the responsible parties. Of these, only the first deserves to be taken seriously.

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