Paul Krugman

A Messaging Tip For The Donald: It's The Fed, Stupid!

The nation’s rogue central bank is essentially a reverse Robin Hood on steroids. If Donald Trump wants to hit the ball out of the park next Monday evening, therefore, he needs to quickly skip over his dog-eared income tax cut plan and put the wood good and hard to the Fed, Janet Yellen, and our unelected financial rulers.

Why Is There So Much Confusion In Macroeconomics?

Should we print, not print? Stimulate, not stimulate? Is austerity the right or wrong policy? Is government spending or printing effective? If we ask two economists these questions, we will likely get three opinions for each question. Economists seem confused, yet these questions are more important today than ever. Where does this confusion come from?

Infrastructure Spending Does Not "Grow The Economy"

In simple terms that even Donald Trump and Paul Krugman can understand: there is no such thing as the Infrastructure Fairy that takes government spending and magically turns it into economic growth.

"This Ain't Rocket Science Folks" - Fundamentals Matter (And Will Always Matter)

We can pretend fundamentals don’t matter and sure in the day to day profit taking of Citadel and the like they really don’t matter. But, while the PhDs may talk big about this new world economy where a move to universal welfare means jobs and wages don’t matter - well that is nonsense. Jobs and wages matter and they will always matter.

Obamacare Is The Welfare State's Requiem

No more. The Obamacare meltdown has destroyed the conceit that government can improve society through expansion and mandate. It turns out that large stacks of paper don’t automatically bring justice, equality, efficiency, and universal provision. Obamacare could be the last large-scale welfare program ever passed by Washington, D.C.

Why Paul Krugman Should Go Back To 5th Grade

Economist Paul Krugman is whining for more fiscal stimulus, his favorite pastime by far. Krugman’s target this time is Japan... "The average 5th grader understands it’s absurd to pay money for something guaranteed to be useless, but the average Keynesian economist doesn’t."

Here's Why Wages Have Stagnated (And Will Continue To Stagnate)

The only way to reverse declines in labor participation and stagnation in wages is to make it easier to start enterprises and hire people, and dramatically lower the cost basis of the entire economy. There is scant evidence that policymakers have any real interest in either of these goals or any knowledge of how to make them happen, despite the abundance of lip-service paid to "business-friendly" strategies.

Howard Kunstler Rages "Wake The F**K Up... Gravity Always Wins"

"...distortions in markets, currencies, and capital are spinning out in an ever broader, centrifugal gyre, coinciding, as chance would have it, with the most peculiar election in modern times. The incoherence and deceit on both sides is far beyond even the extravagant American norms of dauntless political bullshit. We literally have no idea what we’re doing in this country, or what we’re actually wishing for. The financial structures of everyday life look more fragile than ever. Gravity always wins."

IMF Studies Piketty’s Work On Income Inequality, Finds There Is "No Empirical Evidence” To Support Claims

When Thomas Piketty’s "Capital in the 21st Century" came out in 2013, it quickly became a favorite of the political left and neo-Keynesian economists as his findings fit the narrative of increasing income inequality. Paul Krugman said “ Mr. Piketty’s contribution is serious, discourse-changing scholarship in a way most best sellers aren’t.  There may be just one problem with Piketty’s earth-shattering revelation: it appears to be wrong.

Michael Hudson: Obama Said Hillary Will Continue His Legacy – And Indeed She Will!

Trump is right in saying that there has not really been a recovery for the Rust Belt or for the 99%. Hillary brazens it out by claiming Obama's neoliberal economics have helped wage-earners, despite the debt deflation blocking recovery. She promises to continue his policies (backed by his same campaign funders). That would seem to be a losing strategy for this year's election – unless the Democrats gain control of the electronic voting machines, especially in Ohio.