MCViewPoint

Opinion from a Libertarian ViewPoint

EconomicPolicyJournal.com: LSD-Trip Commentary From Paul Krugman; I Had to Play it Back Three Times

Posted by M. C. on March 19, 2021

Krugman did say that the 1970s stagflation was “more myth than reality.”

So I went to a real authoritative economics text, the college textbook written by Krugman and his wife Robin Wells, Macroeconomics. This is what it has to say about the 1970s:

Stagflation was the scourge of the 1970s: the two deep recessions of 1973-1975 and 1979-1982 were both accompanied by soaring inflation.

https://www.economicpolicyjournal.com/2021/03/lsd-trip-commentary-from-paul-krugman-i.html

Paul Krugman, Fareed Zakaria and Larry Summers

This past Sunday, Paul Krugman appeared on the CNN show, “Fareed Zakaria GPS.”

He was there to debate Larry Summers about the Biden $1.9 trillion spending package. Quite correctly, Summers warned about the potential price inflationary consequences of the spending.

As per usual, Krugman’s commentary sounded as though he could have been an added line to the lyrics for White Rabbit. By defending the massive spending bill as non-inflationary, he could have easily been mistaken for a past adviser to Gideon Gono when he was Zimbabwe’s central banker.

But the most remarkable Krugman stunner during the show was that for some odd reason he sought to deny the stagflation of the 1970s. It was like he was having an extended Joe Biden moment.

He actually said that 1970s stagflation was “more myth than reality” (stagflation is simultaneously climbing unemployment and price inflation).

The first time, I heard it, I thought I missed something. Since I record all major news talk shows on my YouTube TV for moments just like this, I replayed his comment 3 times. I did hear correctly the first time. 

Krugman did say that the 1970s stagflation was “more myth than reality.”

So I went to a real authoritative economics text, the college textbook written by Krugman and his wife Robin Wells, Macroeconomics. This is what it has to say about the 1970s:

Stagflation was the scourge of the 1970s: the two deep recessions of 1973-1975 and 1979-1982 were both accompanied by soaring inflation.

And that was the case. Unemployment and inflation during the period were the highest in the more than 70 years surrounding the period. (Red lined year in the charts below).

Unemployment Rate 1950-2019

Consumer Price Inflation 1950-2020

Krugman really just makes things up. It doesn’t appear to matter that it contradicts fact or what he said before. I am beginning to think he is a Leninist-opportunist, either that or he is tripping on a steady dose of real bad acid.

 –RW

Be seeing you

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: