But now Paul Krugman is just writing about economics, and doesn't seem to have the nerve to say anything.
Paul Krugman's latest effort, "One Good Month", is sure to provide one good Friday for the Krugman Brute Squad. The Earnest Prof ponders the latest employment statistics (hence his title) and finds them wanting. He then describes the choice before us this November - Kerry is surrounded by Rubinomics veterans, and will almost surely walk that road; Bush is an unreconstructed Reaganomics guy, and will take us in that direction. Rather than quibble with the specifics of his characterization of either approach, we will, as a time management exercise, simply identify a few obvious attack lines.
(1) Hey, Dude, Where's My Conclusion?
If this is a choice between Rubinomics and Reaganomics, mightn't we expect a future Nobel-laureate in Economics to offer his informed opinion on the two approaches? Instead, we get economics as talk-therapy:
In short, this year's election will be a contest between a candidate who advocates a return to economic policies that were associated with eight years of very solid job growth, and one who advocates continuation of policies that have, after three years, yielded exactly one good monthly jobs report. I know: Mr. Clinton doesn't deserve all or even most of the credit for the good times on his watch, and Mr. Bush doesn't deserve all the blame for the bad times on his. Still, on the face of it there's nothing to recommend Mr. Bush's approach.
Didn't you feel good under Clinton? Don't you feel bad now? But take out the qualifiers in this paragraph and there is nothing left - Rubinomics is "associated" with eight good years, but Mr. Clinton doesn't deserve "even most of" the credit. "On the face of it" there's nothing to recommend Mr. Bush's approach? My mom knew that - perhaps a big time economist might get behind "the face" and give us his professional evaluation.
(2) Apocalypse When?
We have heard countless times from the earnest Prof (Banana Republic / Banana Republic / bits of sense on entitlements) that the looming deficits and the entitlements bubble must be addressed, or it will crater the US economy. Has that stopped being an issue? If not, why not tell us that Kerry, unlike Bush, will do the right thing - unless there is no evidence of him tackling those issues either, of course.
(3) Catch A Wave, And You're Sitting On Top Of The World
There are serious baseline problems with comparing job creation under Clinton with job uhh, non-creation under Bush (creationists play a different role in this Administration). Check the stats - non-farm payrolls languished around 109 million for three years (Jan 90 to Feb 93), so the US economy is perfectly capable of spending time in the wilderness. Secondly, payrolls bottomed out in May 91, and had regained their previous peak by the time Bill Clinton took office in Feb 93. Consequently, he inherited an economy that had felt the pain, (including that of the Bush I tax hike) and was already experiencing the gain.
George Bush, by gloomy contrast, inherited an economy that was about to hit a wall (based on the lagging employment indicator) - employment peaked in Mar 2001, and only bottomed out in Aug 2003. This makes Clinton-Bush comparisons tricky, and creates huge problems with statements like:
It also tells us that by past standards, March 2004 was nothing special.
And we should be seeing something special, because our economy should be on the rebound. Bad times are usually followed by big bouncebacks. .
One year after employment bottomed out in May 91, the economy had added roughly 400,000 jobs - some bounceback. And is Krugman now predicting a big bounceback for the US? Japan had weak recoveries followed by new recessions for a decade - is Krugman now saying it won't happen here?
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