Friday, July 17, 2020

Hea culpa

Paul Krugman admits that he may, perhaps, have been a little incorrect about that whole global economy thing, at least in the short term:
Concerns about adverse effects from globalization aren’t new. As U.S. income inequality began rising in the 1980s, many commentators were quick to link this new phenomenon to another new phenomenon: the rise of manufactured exports from newly industrializing economies.

Economists took these concerns seriously. Standard models of international trade say that trade can have large effects on income distribution: A famous 1941 paper showed how trading with a labor-abundant economy can reduce wages, even if national income grows.

And so during the 1990s, a number of economists, myself included, tried to figure out how much the changing trade landscape was contributing to rising inequality. They generally concluded that the effect was relatively modest and not the central factor in the widening income gap. So academic interest in the possible adverse effects of trade, while it never went away, waned.

In the past few years, however, worries about globalization have shot back to the top of the agenda, partly due to new research and partly due to the political shocks of Brexit and U.S. President Donald Trump. And as one of the people who helped shape the 1990s consensus — that the contribution of rising trade to rising inequality was real but modest — it seems appropriate for me to ask now what we missed.
There's been a lot of this going around. Leading globalists such as Kissinger and Fukuyama have published learned tomes explaining why globalism has "unexpectedly" failed. Of course, it never occurs to them to admit that nationalist skeptics like me were correct all along, hence these revisionist self-critiques that are primarily intended to salvage the tattered remnants of their award-winning reputations.

In the meantime, I will patiently await my Quasi-Nobel Prize in Economics for creating the Labor Mobility proof of the impossibility of free trade.

And I will also fisk Krugman's entire column on the Darkstream this weekend.

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Blogger Shane Bradman July 17, 2020 1:33 PM  

The profession of economics has been full of liars and frauds since before Adam Smith. Adam Smith is no longer of any use because we're not living in the British Empire any more.

Blogger Jeroth July 17, 2020 1:39 PM  

The only reason this Jewish hack is in the position he's in is because he's a genocidal maniac who hates Europeans. I hope I live long enough to see these sick bastards cut down and dragged through the streets. And if they all flee to Israel, Israel is going to have a serious problem.

Blogger Reprehensible Adam July 17, 2020 1:45 PM  

It’s ammunition that Nationals need.
Need to get the books and articles.

Blogger Lazarus July 17, 2020 1:50 PM  

If you change your name to Vox Daygleberg you might have a shot.

Blogger Rough Carrigan July 17, 2020 1:54 PM  

He's probably just as accurate in his representations to the rest of us about how kiddie porn got on his computer.

Blogger jijijeac July 17, 2020 2:00 PM  

mainstream economists are just pundits that use fancier language and parrot establishment talking points. No one forbid them for taking wages and inequality into consideration its just they knew they didn't fit the mainstream narative so they didn't uses them in the models. those models lack any predictive capacity anyway.

Blogger TheMaleRei July 17, 2020 2:00 PM  

Is this another example of overly educated people like Krugman mistaking their wishes and desires for predictions?

Blogger Karen took the Kids July 17, 2020 2:03 PM  

Another goy panicking since Maxwell got arrested I'd bet.

Blogger "William Berke" July 17, 2020 2:07 PM  

This comment has been removed by the author.

Blogger Snidely Whiplash July 17, 2020 2:09 PM  

"Well, gosh. My bullshit theories that made me ungodly filthy rich seem to have dispossessed an entire generation of Americans. Oh well!"

Note the complete lack of an apology.

Blogger Dole July 17, 2020 2:11 PM  

Not surprised that inequality is the only thing the loser can think of.

Blogger Canadian Warlord July 17, 2020 2:14 PM  

When the last little old lady dies and to the are no more cable subscriptions or newspaper deliveries, are these economists going to find themselves out of the economy?

Coming soon to a parking lot near you, signs that say:

"Will generate false predictions for food."

Blogger Gallant July 17, 2020 2:19 PM  

Not sure I could take you seriously if you had a Nobel Prize.

Blogger Newscaper312 July 17, 2020 2:21 PM  

You misspelled Oy vey!

Blogger Haus frau July 17, 2020 2:31 PM  

Sounds like this back tracking is more evidence that certain people can't make the planned jump to China. Anywhere but Israel.

Blogger Paulito July 17, 2020 2:33 PM  

Wait, Paul Krugman was wrong about something? It must be a day that ends in "y".

Blogger Silent Draco July 17, 2020 2:34 PM  

Gallant, a Nobel medal in a soft polymer case would make a wonderful toy for his dogs to play fetch with.

Blogger Damelon Brinn July 17, 2020 2:56 PM  

I saw a link to that yesterday from this article I stumbled over. Guess I shouldn't be surprised that there wasn't more talk about it when he wrote it. After all, it's only one of the leading economists admitting that trade and foreign policy of the last 30 years have been fucked up. The impression I got from the article I linked was that a lot of people want to reposition themselves as having had concerns about globalism, not that they expressed them or did anything about them at the time. And of course they manage to blame Trump for the fact that their screw-up can't be fixed easily now.

Looking forward to the fisking.

Blogger thechortling July 17, 2020 3:20 PM  

He's such an idiot. There's just no better living example of ID10T (eye dee ten tee) syndrome than Paul Robin Krugman

is that really his middle name or did he take on of his wives' (ex and present wife both named Robin) names?

Even Snopes has to fess up that he's a false prophet of liberal buy yourself into BOOM economy

I've heard he has successfully lifted himself by his own underoos. Underoos loaned from neighbor's 6yo. They're very close friends after all. Lots of pictures. Together. Found on his hard drive. Planted by R-R-Russians.

Blogger Yukichi Sensei July 17, 2020 3:25 PM  

Vox has already pointed it out, but if you study modern economics, compare it to history, you realize economics is all a scam.

My brother who is an economist, we have talked a bunch and basically agree at best it is a videogame.

Blogger The Masked Menace July 17, 2020 3:37 PM  

Multi-trillion $$$dollar$$$ bailouts for billionaires and unrestrained competition from third world migrants for the struggling native working class. Gosh guys... what could possibly have gone wrong with that plan?

Blogger jijijeac July 17, 2020 3:38 PM  

@18 true

Blogger Quicksilver July 17, 2020 3:54 PM  

Snake oil peddlers in the service of their horned master

Blogger Rabid Ratel July 17, 2020 3:57 PM  

We need a new prize. This Nobel just doesn't cut it anymore.

Blogger Daniel July 17, 2020 4:02 PM  

Since he is a docile puppet, Krugman is typically a very shoddy word wizard. I wonder who ghostwrote this somewhat more sophisticated incantation of necreminice.

Blogger Kingly Gift July 17, 2020 4:29 PM  

I'm surprised that he didn't mention the real downside of globalism; that it becomes so easy for those pesky international hackers to plant kitty-porn on your computer.

Blogger roundeye July 17, 2020 4:34 PM  

Off topic: Got an email from eBay today. Changed their terms of service. All disputes in arbitration handled under Utah law (where they have a data center) not California. Hmmmmm.

Blogger Tatooine Sharpshooters' Club July 17, 2020 5:13 PM  

As U.S. income inequality began rising in the 1980s

Of course, Always Wrong Paul isn't really interested in plumbing the depth of the disaster he's had a hand in creating, he just wants to babble about social justice bunkum like "income inequality".

Blogger pnq87 July 17, 2020 5:25 PM  

So many liars, preeners, traitors and sellouts.
Braveheart knew what to do.

Anonymous Anonymous July 17, 2020 5:25 PM  

If there was ever anyone deserving of a big fisk in the face, it's Krugman.

Blogger eclecticme July 17, 2020 6:31 PM  

As NN Taleb always points out, the prize is the "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel", administered by the Nobel Prize committee. It was never part of the initial real Nobel Prizes.

Blogger Felis Concolor July 17, 2020 6:55 PM  

No surprise to find Krugman among the likes of Kissinger, Fukuyama, McKibben and Ehrlich; all people who have staked their careers on being wrong.

Blogger Ransom Smith July 17, 2020 7:08 PM  

This being the same man who said the internet was just a fad.

Blogger BalancedTryteOperators July 17, 2020 7:33 PM  

In the meantime, I will patiently await my Quasi-Nobel Prize in Economics for creating the Labor Mobility proof of the impossibility of free trade.

Don't joke. The Nobel and Nobel Memorial Prizes have received out of the left field nominations before.

Blogger Unknown July 17, 2020 8:53 PM  

7. TheMaleRei July 17, 2020 2:00 PM
Is this another example of overly educated people like Krugman mistaking their wishes and desires for predictions?


it's just another Judeo-Satanist providing a cover story to pretend that ((( Marx ))) hadn't pointed out that International Free Trade was to be a tool used to instigate the genocide of the Bourgeoisie in 1848.

21. The Masked Menace July 17, 2020 3:37 PM
Multi-trillion $$$dollar$$$ bailouts for ((( billionaires )))

fixed for ya.

Blogger AngryGreek July 17, 2020 10:08 PM  

People like Krugman are often widely circulated due to their window dressing skills. You can’t dismiss that many elites and Boomer middle class masses wanted him to be right. Globalization allowed Boomers high and low to exploit the US’s world reserve currency status. The offshoring of manufacturing allowed them to politically memory-hole domestic private sector unions and failures of civil rights legislation. Now that credit card is almost maxed out and Boomers are in trouble. Think of a Rip Van Winkle who went on a 30 year bender in Vegas and just woke up In bankruptcy court.

Blogger Fozzy Bear July 17, 2020 11:33 PM  

OT: Today the Senate Judiciary committee declassified two documents proving that in January 2017, the FBI knew the Pee Dossier was a total fake, they knew Carter Page wasn’t a Russian spy, because he was a CIA spy, and the surveillance on Trump started before he announced his candidacy.
My prediction: Trump secretly pardons Obama, and they both let Biden take the fall in October.

Anonymous Anonymous July 18, 2020 12:21 AM  

He’s lying anyway. Income inequality began to rise in 1971 but he can’t say that because his entire career was built on denying the ruinous effects of fiat money.

Blogger JamesB.BKK July 18, 2020 3:58 AM  

Hadn't really been following after Murphy's phoned in cookie cutter debate performance but sorry to see Woods and Murphy did a final Contra Krugman 11 June 2020. Decent run, but those guys also deny the increased supply and deflationary effects on wages with some imagined offsetting demand, muh consumer prices, and muh imaginary lines drawn on the ground. We are fortunate to have a better critic and defender of the critique remaining on the case.

Blogger Bernard Korzeniewicz July 18, 2020 4:11 AM  

Well, maybe it is time to come back to the Catholic School system like it was before 1517:)?
AFAIK first comprehensive study on prices, demand and Workforce has been done by the University of Toledo on the Saragossa"a market. The King Philipe II of Spain implemented it and created The Sapanish Imperium.

Blogger map July 18, 2020 4:44 AM  

Oh. It's far worse than that.

When Nixon got us off the gold standard, he needed economists from both sides of the spectrum to do. On the left, he had James Tobin. On the right, he had Milton Friedman.

Yes, that Milton Friedman.

Friedman's logic for supporting a move off the gold standard was his equation MV=PT, where he noticed that the velocity of money is relatively stable, basically a constant. He reasoned that because of this stability, currencies could float very easily.

What he did not realize is that money had such low velocity because the world on a gold standard. Henry Reuss predicted that, once money was detached from gold, gold would drop to $7/oz from $35/oz. Instead, gold skyrocketed to $140/oz.

Of course, one wonders if Friedman understood that this would happen.

Robert Mundell, on the other hand, knew the gold price would skyrocket.

Blogger Mr.MantraMan July 18, 2020 6:29 AM  

IMO Krugman and his class of clowns are starting to hear phrases such as "It's your fault" and since they are effeminate, and their greatest fear is the mantle of responsibility. Oh, it's been fine for decades since conservatives tripped over themselves to have that all important discussion with this sophist, and the cons provided this cover and made bank, thanks conservatives.

FTR any rumor that me becoming a warlord and decreeing future punishments for conservative blowhard intellectuals who wrote books educating us with slight critiques of their "liberal" counterparts will be to have a truck load of their books dumped upon them till they suffocate are totally not completely true.

Blogger Mr. Deficient July 18, 2020 6:48 AM  

I should write this guy a thank you, he started me and many others on the "skeptical of experts" track.

Blogger Avalanche July 18, 2020 6:53 AM  

@27 " All disputes in arbitration handled under Utah law"

Our Dark Lord is no doubt pleased and happy -- he gets to read ANOTHER Terms of Service document and the complicated state laws regarding arbitration of a state he has not had the chance to play in! He has his glass of wine, his dogs and family around him, and his favorite reading material.

Thank you eBay for this early, but not unexpected, gift!

Blogger flyingtiger July 18, 2020 9:44 AM  

#2: This guy is an idiot. Food is power. If the farmers refuse to grow crops, they would bring down the nation faster than CV-19. No one cares about diversity when you are starving. BTW, even liberal think DiBlasio is an idiot.

Blogger Tars Tarkas July 18, 2020 10:09 AM  

It's just a Jew responding to the rebuff of Jews by China. Now that their escape plan has not worked, they think they can reverse this crap.

Blogger kurt9 July 18, 2020 12:24 PM  

Its worth noting that Andrew Grove, the founder and main builder of Intel, wanted a "job centric" economic policy that would have discouraged the outsourcing of technology manufacturing to Asia. He also advocated import tariffs.

Blogger L.Fairchild July 19, 2020 12:15 AM  

Aw yis... economics darksteam. My favourite.

Anonymous Anonymous July 19, 2020 2:40 AM  

The price of anything is a ratio.

A dollar per x widgets.

X dollars per ounce of gold.

Increase the number of widgets and the price in dollars falls because there are fewer dollars per widget available.

Increase the dollar supply and the price of gold in dollars increases as there are more dollars per ounce in circulation.

Mix in short term volatility due to our tendency to over-shoot in both directions (fear or greed).

If the Feds never stop money printing (physical or virtual) then the short term over reactions never settle.

Chronic emotional whipsawing will make you physically and mentally sick. It’s possibly not a perfect analogy but the body politic is plainly sick and financial gerrymandering is a part of that sickness.

Blogger Unknown November 02, 2020 7:15 AM  

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