June 9, 2004

#159: Flailing and shrillness escalate...

P. Krugman
KRUGMAN TRUTH SQUAD

Once again Paul Krugman proved he is a world-class jerk with two articles in the last three days that show he's willing to slander anyone who doesn't agree with his now proven-to-be-incorrect views of the U.S. economy. The Maestro Slips Out of Tune (06/06/04) is yet another cheap shot at his old nemesis Alan Greenspan, published in the New York Times Sunday Magazine. Then in his regular column The Great Taxer (06/08/04) he first takes some swipes at Ronald Reagan and then, as a means of getting President Bush, pays Reagan a back-handed compliment for reversing some of his initial tax cuts, something Bush has refused to do.

Squad readers will not be surprised to learn that both of these articles are very similar. Remember the Krugman motto: Why write two or more different columns when you can be paid two or three times for just recycling the first one?

The essence of both writings can be summarized in a quote form each. From The Maestro Slips out of Tune:

"Either way, Greenspan did something remarkable. After becoming a symbol of America's economic turnaround in the 90's, and anointing himself the nation's high priest of fiscal probity, he lent crucial aid and comfort to the most fiscally irresponsible administration in history. In the end, that will be his most important legacy."
And from The Great Taxer:
"The contrast with President Bush is obvious. President Reagan, confronted with evidence that his tax cuts were fiscally irresponsible, changed course. President Bush, confronted with similar evidence, has pushed for even more tax cuts."
Notice that the veracity both of these quotes PRESUMES that Krugman's long held, pessimistic view of the U.S. economic outlook due to the Bush fiscal policy is correct. Thus he slams Bush for pursuing a fiscal policy in the face of evidence of its irresponsibility and slams Greenspan for abetting him in becoming the "most fiscally irresponsible administration in history."

And just what is the evidence of fiscal irresponsibility one might ask? The answer is, there is none. In fact, all the evidence supports the opposite view. Bush's fiscal policy has worked like a charm. Now that employment has started to grow rapidly the economy has entered one of those golden zones where a recovery becomes self-sustaining. One by one, Krugman's arguments of a renewed slump have fallen to the wayside. He can no longer grouse that the economy may stall when the tax cut stimulus stops, or when the home refinancing stops, or when the consumer gets tired of shouldering a burden that should share with capital spending. And jobs! We can't imagine what Krugman will say about the rapid payroll growth. As we have said before, jobs were the last arrows in his quiver and he's shot them and missed.

As he stews in his own juices over the next few months, we expect his flailing and shrillness to escalate. Hang on!

[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 June 9, 2004 8:36 AM
Weblog by John Weidner