Paul Krugman has become an embarrassment to the economics profession.
Despite his Nobel Prize and despite his previous high regard in the
profession, his twice-a-week editorials in The New York Times are causing even progressive economists to treat him as somewhat of a kook.
Since 2011, the United States has followed what Krugman correctly calls a policy of “austerity.” For example, the federal budget deficit has declined from 8.4% of GDP in 2011 to a predicted 2.9% of GDP for all of 2014. All along the way Paul Krugman protested that such policies would prolong the recession and even push us into a “low-grade depression.”
In fact the opposite occurred. As Jeffrey Sachs wrote the other day:
“… rather than a new recession, or an ongoing depression, the US unemployment rate has fallen from 8.6% in November 2011 to 5.8% in November 2014. Real economic growth in 2011 stood at 1.6%, and the IMF expects it to be 2.2% for 2014 as a whole… [It is likely] that aggregate growth for all of 2015 will be above 3%.”
http://www.forbes.com/sites/johngoodman/2015/01/13/voodoo-economics-paul-krugman-rejected-by-his-peers/
Since 2011, the United States has followed what Krugman correctly calls a policy of “austerity.” For example, the federal budget deficit has declined from 8.4% of GDP in 2011 to a predicted 2.9% of GDP for all of 2014. All along the way Paul Krugman protested that such policies would prolong the recession and even push us into a “low-grade depression.”
In fact the opposite occurred. As Jeffrey Sachs wrote the other day:
“… rather than a new recession, or an ongoing depression, the US unemployment rate has fallen from 8.6% in November 2011 to 5.8% in November 2014. Real economic growth in 2011 stood at 1.6%, and the IMF expects it to be 2.2% for 2014 as a whole… [It is likely] that aggregate growth for all of 2015 will be above 3%.”
http://www.forbes.com/sites/johngoodman/2015/01/13/voodoo-economics-paul-krugman-rejected-by-his-peers/
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