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free trade & free markets ideological culture media and media people

Dead Economists Walking?

Zombies don’t exist. Not like in the movies.

Or like in the pages of The New York Times.

The Times’s economist Paul Krugman has a new book out, Arguing with Zombies, and, if I ever had the tiniest margin of utility nudging me towards reading it, John Goodman’s review in Forbes has dissuaded me. For Krugman doesn’t argue with anyone — he argues against economists whom he mischaracterizes.

No, that’s apparently too kind. He argues against, says Goodman, economists who don’t exist. “Zombies are economists who believe that every tax cut pays for itself with increased revenue,” Goodman explains. “They hate the poor. They are closet racists. They do the bidding of billionaire puppet masters who pay their salaries and fund their research. Their goal in life is to make the rich richer and the poor poorer.”

Goodman concludes by noting that Krugman knows better, for “if you are thinking that Krugman has never met a Republican, you might be inclined to cut him some slack.” But no, “it turns out Krugman actually worked in the White House during the Reagan administration. That means he knows the tax cuts weren’t devised by economists whose motivation was to make the rich richer. He knows his fellow economic advisors to the president weren’t puppets, doing the bidding of billionaires. He knows they weren’t closet racists. He knows they didn’t hate the poor.”

Krugman — a Nobel Laureate — calls his enemies the worst names imaginable. Yet, Krugman the Zombie Hunter is one reason our political culture is so monstrous right now.

Not zombie-​monstrous, partisan-monstrous. 

Meanwhile, the two sides that hate each other are united at least in one way, in creating another monster: the $2.2 trillion bailout, and the record new deficit.

This is Common Sense. I’m Paul Jacob.


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free trade & free markets national politics & policies responsibility too much government

The Skinny on Trumponomics

President Donald Trump does not trust economists. So he is demoting the Council of Economic Advisors, booting out of the Cabinet the Council’s chairperson.

If this were only because economists as economists cannot do what he has been able to do — make a big success in business and trade — we could give him something like a pass.

After all, successful entrepreneurs have a knack for guessing an unpredictable future. Economists, not so much. Why the difference? Maybe because entrepreneurs have “skin in the game.” Governments boards and bureaus — or endowed professorships — don’t risk anything like skin.

Besides, prediction is an art, not a science.

Could Trump be fooled by his knack for working with real risk?

But all this may be irrelevant.

Trump’s problem seems to be that he cannot find enough reputable economists to jump on board his protectionist bandwagon.

Trade barriers, high tariffs and punitive measures to control corporate behavior — among Trump’s most popular policies — aren’t big among economists.

According to Josh Zumbrun, writing in the Wall Street Journal, a “survey of every former living member of the CEA for both Republican and Democratic administrations found that not one member publicly supported Mr. Trump’s campaign.”

Economist Pierre Lemieux, writing in response to Zumbrun’s article, clarified Trump’s particular problem: economists “have methods and theories that prevent them from saying stupidities. They are difficult to turn into parrots. And they believe in the benefits of exchange.”

That latter notion, really basic, is what protectionists like Trump do not understand.

And the kind of predictions economists can successfully make run like this: “Well, that won’t work!”

It’s usually said about protectionism.

But whose skin is on the line now?

This is Common Sense. I’m Paul Jacob.


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