September 3, 2003

#118: Déjà all over again ...

P. Krugman
KRUGMAN TRUTH SQUAD

We know we said just a week ago in Squad Report #116 that, "He'll be Back." But we never thought Paul Krugman Another Friday Outrage (09/02/03) would be back quite this fast. It's déjà California, all over again! And it's not just California AGAIN, but it's essentially the same old columns AGAIN that he wrote over the last two years�recycled with a few minor changes. For example, Smoking Fat Boy (05/10/02), Turning California Off (06/27/01, Power and Profit (01/24/01) and California Screaming (12/10/00) are all basically the same column. They can be found in the PK archives. We said all we had to say on this topic in Squad report # 9.

Sooner or later Krugman will have to deal with the gathering strength of the US economy. Talk about great timing! A recovery going into an election year is an incumbent�s dream and Bush is about to live that dream. Krugman obviously knows this and is shying away from economic topics in his recent columns. This also explains his obsession with California and Iraq/Al Qaeda as diversionary subjects. However, when he does return to economic issues expect him to start off by hitting some "soft targets" such as deficits (irrelevant) and unemployment (a lagging statistic). But expect little to be said about productivity growth, recovering profits and expanding business investment in capital equipment and inventories which are the real meat of the upturn. When Krugman must finally deal with the full force of the recovery he will probably retreat into class warfare, growing income inequality, the burgeoning plutocracy, the top 1% and other of his old standbys. It will be fun to write about them for a change.

[The Truth Squad is a group of economists who have long marveled at the writings of Paul Krugman. The Squad Reports are synopses of their discussions. ]

Posted by John Weidner at September 3, 2003 9:41 AM
Weblog by John Weidner