When Keynesian Correlation Is Causation: Krugman's Contrived Climatic Conundrum
From John Lohman
Forget high unemployment, hyperinflationary central bank policies, competitive devaluations, and all those useless demographic and political factors that go into the Shoe Thrower’s Index. In what can only be described as a moment of pure Keynesian genius, Paul Krugman concludes that the primary reason for the surge in food riots is…global warming.
Perhaps he’s right. In order to put an end to these pesky riots and revolutions we should reduce our carbon footprint via extensive taxes on emissions (even though many scientists believe CO2 actually lags temperature change). Come to think of it, we should reduce all activities which are ‘positively correlated’ with a rising temperature anomaly, just to be on the safe side. And millions of public sector jobs would be created as new regulatory agencies would be needed, thus solving our structural unemployment issue.
Paul, meet the Keynesian Climate Model….
…with a higher correlation than CO2 (chart concept Ira Glickstein)
But the correlation between Keynesian policies and temperature anomalies is just a bit more impressive.