01.30.13

Krugman and the Kool Kids Table

Posted in Around The Nation, Employment, jobs, The Budget, The Economy, Unemployment at 1:31 pm by wcnews

Paul Krugman’s been taking a lot of undeserved s&#t for years now.  Mainly because he’s been right about the economy.  This has come up again because he was on “Morning Joe” on Monday and they didn’t like what he had to say.

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David Atkins has a good wrap-up of the post appearance back-and-forth, The Church of the Austerians is Shocked by the Heresy of Krugman.

Paul Krugman went on Morning Joe and challenged the Grand Wisdom of the Austerians. Joe Scarborough went and had aconniption fit worthy of a medieval prelate being confronted with heliocentrism for the first time. In Scarborough’s world, to believe that the deficit is anything less than a sword of Damocles is to be insane and unworthy of polite society. And yet, Krugman’s understanding of the economy is widespread, basic Keynesianism that has been proven right time and time again.

How is it that Scarborough lives in such an ideological bubble that standard Keynesianism is so shocking?

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Here at Hullabaloo we call it the Kool Kids Table, a pathway to power and social acceptance inaccessible to those who don’t hold the “right” views.

Do I believe that everyone in Joe Scarborough’s sphere of influence knows that Keynesianism is accurate and that Krugman is right, but chooses to say otherwise because it pads their bank account? Of course not. It takes a conspiracy theorist and an idiot to believe that. Washington is corrupt, but it’s not that corrupt.

No, most of these people believe what they say. I don’t doubt that Scarborough’s perplexed shock is genuine. Just like I believe that most of the conservative theologians who burned Giordano Bruno at the stake believed that our solar system was the only one of its kind. After all, anyone who believed otherwise wasn’t taken seriously and didn’t advance in the Church hierarchy. Everyone who was anyone knew better, and since Bruno refused to accept the conventional wisdom he had to be shunned and ultimately silenced. Bruno’s ideas were unserious and dangerous. The man had his head in the sand and couldn’t see what seemed obvious to everyone else.

Perhaps one day the Church of the Austerians will belatedly apologize to Keynes, Krugman, Stiglitz and all the other great economists whose names have been dragged through the mud. But not likely soon, and not during their lifetimes. In our own sordid lifetimes, Popes Simpson and Bowles will continue to bestow favors upon their cardinals, giving communion only to the Kool Kids who deserve it.

Krugman’s and the Keynesian argument is that most immediate issue we have is to put people back to work, not the deficit. Once the unemployment rate is back down to around 5% then it’s time to start working on the deficit. In other words were in a Depression – not a great one but one nonetheless – and if we don’t put people back to work will stay in it, or as today’s news shows, fall back into recession. (See this from a few years back from Robert Reich, My Father and Alan Greenspan).

The thing is Joe Scarborough and his friends at the Kool Kids Table can scoff at Krugman all they want. But that doesn’t change the fact that he is, and was, right.

Krugman was also on Washington Journal this morning, watch it  then you’ll understand what’s going on.

Further Reading:
Smart Talk On The Next Austerity Disaster.

1 Comment »

  1. Eye on Williamson » It’s bad economic policy that’s holding our economy back said,

    February 1, 2013 at 1:50 pm

    [...] the MSM for years now. Much of it has to do with anti-Keynesians out there that was exposed when Paul Krugman appeared on Joe Scarborough’s show this [...]

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