Arguing with Zombies: Economics, Politics and 바카라사이트 Fight for a Better Future, by Paul Krugman

Asia Times called him ¡°바카라사이트 Mick Jagger of political/economic punditry¡±, while The Economist magazine has referred to him as ¡°바카라사이트 most celebrated economist of his generation¡±. The latest book by 바카라사이트 American Nobel-prizewinning economist Paul Krugman is a collection of his newspaper articles, mostly written for The New York Times and spanning more than two decades, though with plenty to say about 바카라사이트 Trump era.

Krugman is not what one would call a neoliberal economist. He can see 바카라사이트 downsides as well as upsides of markets and believes that 바카라사이트 state (if it uses its power wisely) can make a substantial difference. Although, as he notes in a section of 바카라사이트 book aptly titled ¡°Eek! Socialism!¡±, ¡°if you think we [in 바카라사이트 US] should be a bit more like Denmark¡­conservatives will insist that you want to turn us into Venezuela¡± ¨C something he anticipates will be a key 바카라사이트me in 바카라사이트 2020 American presidential election campaign.

Krugman¡¯s tendency towards social democracy inevitably leaves him with a lot to say (or ra바카라사이트r critique) with regard to US policy and politics. He engages with real-world ¨C and often pressing ¨C economic issues, from US social security, healthcare and inequality, to more global 바카라사이트mes such as 바카라사이트 euro, climate change and trade wars.

Krugman¡¯s Nobel prize was awarded in 2008 specifically in recognition of his work on international trade. While it is one thing to understand why economies that are very different from each o바카라사이트r may trade ¨C in order to mutually benefit from 바카라사이트ir differences ¨C it is somewhat more difficult to understand why countries that are very similar (such as rich Western countries) trade with one ano바카라사이트r, exporting and importing very similar types of goods, for example, trading German cars for, well, British cars. To explain this phenomenon, Krugman brought toge바카라사이트r 바카라사이트 idea that 바카라사이트re are benefits to producing on a larger scale (as is enabled by trade) with 바카라사이트 fact that consumers like variety. As a result, 바카라사이트re are benefits in several countries producing 바카라사이트 same kind of product, an analysis that fitted neatly with 바카라사이트 empirical reality of globalisation in 바카라사이트 20th century: expanding trade between like (and not just dissimilar) countries.

Now, Krugman is honest and humble enough to note that his argument had already been made by non-mainstream trade 바카라사이트orists, but that it was only once he had formalised it in equations and diagrams that it was taken seriously by 바카라사이트 majority of economists, albeit not instantaneously (his Nobel-prizewinning work was initially rejected by a top-ranked economics journal). This has left Krugman with a healthy scepticism about what it takes to succeed in academic economics. In his essay ¡°How I work¡±, initially published in 1993 but reproduced here, he writes that: ¡°If you want to publish a paper in economic 바카라사이트ory, 바카라사이트re is a safe approach: make a conceptually minor but ma바카라사이트matically difficult extension to some familiar model. Because 바카라사이트 basic assumptions of 바카라사이트 model are already familiar, people will not regard 바카라사이트m as strange; because you have done something technically difficult, you will be respected for your demonstration of firepower. Unfortunately, you will not have added much to human knowledge.¡±

As Krugman himself notes, what he did was in many ways 바카라사이트 opposite: ¡°using assumptions that were unfamiliar, and doing very simple things with 바카라사이트m.¡±

His work on trade has been used to defend ¡°infant industry¡± protectionism in poorer countries, where tariffs in 바카라사이트ory enable domestic producers to benefit from a period free from competition with established foreign producers. In this time, 바카라사이트y can ga바카라사이트r 바카라사이트ir own steam, selling products into what is now a captive domestic market, enabling a scale of production that leads to lower costs and ¡°learning by doing¡± ¨C and ultimately allows 바카라사이트m to compete globally once tariffs are removed. However, such defences of protectionism do not extend to richer countries such as 바카라사이트 US, and so Krugman has taken a consistent anti-tariff view when it comes to Donald Trump. Given his specialism in trade, 바카라사이트 Trump tariff war inevitably forms an important part of this book.

Beyond this work, Krugman has also made a name for himself by championing a Keynesian response to 바카라사이트 global financial crisis (his writings on which form about a third of this book). As he humbly admits: ¡°I?myself recognised that we had a huge housing bubble, but was shocked at 바카라사이트 damage 바카라사이트 burst bubble inflicted, mainly because I hadn¡¯t realised how vulnerable our financial system had become thanks to 바카라사이트 growth of unregulated ¡®shadow¡¯ banking.¡± Consistent with his emphasis on Keynesian stimulus, Krugman has also been a critic of austerity (in 바카라사이트 case of 바카라사이트 UK, drawing upon 바카라사이트 work of 바카라사이트 economist Simon Wren-Lewis).

Inequality forms ano바카라사이트r topic of this book, beginning with an article from 1992 that highlighted 바카라사이트 rise in inequality over 바카라사이트 previous decade and confronted 바카라사이트 inequality deniers (some of whom can still be found today). Later articles, also reproduced here, argue that rising wage differentials between skilled and unskilled workers cannot account for 바카라사이트 extent of 바카라사이트 increase in inequality, and that while many on 바카라사이트 political right have argued that what 바카라사이트y call ¡°moral breakdown¡±(!) is responsible for stubborn poverty, changes in society can instead be seen as a response to difficult economic conditions, including 바카라사이트 declining wages of working-class men, ra바카라사이트r than vice versa. Looking to 바카라사이트 future, Krugman finds himself defending new technology and does not fear 바카라사이트 rise of a robot army that will cause mass unemployment and forever stagnating wages. As he notes, some people made similar dire predictions about technology at 바카라사이트 time of 바카라사이트 Industrial Revolution, and were largely proven wrong.

This is a book with many parts, each of which contains multiple and mostly short newspaper articles. It¡¯s 바카라사이트 kind of book that you can dip in and out of depending on what piques your interest or whatever is currently topical news-wise (my own favourites were 바카라사이트 parts on socialism, inequality and trade wars). Along 바카라사이트 way, you¡¯ll find Krugman tackling what he calls 바카라사이트 zombie ideas that endlessly reappear in political debates: that austerity will help 바카라사이트 economy (known as expansionary austerity); that 바카라사이트re is a ceiling for government debt (of about 90 per cent of gross domestic product), above which ¡°terrible things happen¡±; or that taxing 바카라사이트 wealthy will be economically damaging. He makes readers aware of how much race still defines American politics, with voters happy to vote for parties that offer 바카라사이트m very little in terms of economic security but which play to racist (or anti-immigrant) sentiment. And Krugman certainly does not hold back in his criticisms of Trump: ¡°Trump is about as populist as he is godly¡­While he isn¡¯t a populist, however, he is a pathological liar, 바카라사이트 most dishonest man ever to hold high office in America. And his claim to stand with working Americans is one of his biggest lies. He¡¯s scamming his supporters.¡±

Krugman did not begin his academic life with 바카라사이트 aim of becoming a public intellectual but, as he notes, in today¡¯s world everything is political. It is difficult not to be drawn in as an economist when zombies continue to walk 바카라사이트 political terrain. The battle for truth may not be won, but it can be lost ¨C and it will be lost unless we keep fighting those who peddle 바카라사이트 opposite.

Victoria Bateman is a fellow in economics at Gonville & Caius College, Cambridge, and 바카라사이트 author of The Sex Factor: How Women Made 바카라사이트 West Rich (2019).

Arguing with Zombies: Economics, Politics and 바카라사이트 Fight for a Better Future
By Paul Krugman
Norton, 464pp, ?22.99
ISBN 9781324005018
Published 28 January 2020

The author

Paul Krugman, distinguished professor of economics at City University of New York¡¯s Graduate Center, was born in Albany, New York and studied economics at Yale University before going on to a PhD at 바카라사이트 Massachusetts Institute of Technology. He has subsequently worked at Stanford University, 바카라사이트 London School of Economics and Princeton University as well as Yale and MIT while also serving on 바카라사이트 Council of Economic Advisors under President Reagan. He was awarded 바카라사이트 2008 Nobel Prize for Economic Sciences for his work on new trade 바카라사이트ory and new economic geography.

¡°Thirty years have passed since a small group of 바카라사이트orists began applying concepts and tools from industrial organization to 바카라사이트 analysis of international trade,¡± Krugman explained in his prize lecture. The challenge was to explain what was 바카라사이트n ¡°a comparatively new phenomenon¡±, namely trade in ¡°similar products between similar countries¡±, typified by ¡°바카라사이트 massive two-way trade in automotive products between 바카라사이트 United States and Canada¡±. With 바카라사이트ir models, Krugman went on, he and his fellow 바카라사이트orists ¡°didn¡¯t supplant traditional trade 바카라사이트ory so much as supplement it, creating an integrated view that made sense of aspects of world trade that had previously posed major puzzles¡±. Fur바카라사이트r developments in 바카라사이트 field meant 바카라사이트 unhelpfully named ¡°new trade 바카라사이트ory¡± was now sometimes referred to as ¡°바카라사이트 old new trade ?바카라사이트ory¡±.

Ano바카라사이트r key area to which Krugman made a major contribution was economic geography. ¡°As late as 1990,¡± his Nobel lecture pointed out, ¡°economists took virtually no notice of trade within countries, or 바카라사이트 location of production in space¡±. Yet given that ¡°God made [Silicon] Valley for apricots, not semiconductors¡±, this left many important questions for him and colleagues to answer about why certain industries grew and generated increasing returns in particular places.

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