It’s not about the budget; it’s about the power...So will the attack on unions succeed? I don’t know. But anyone who cares about retaining government of the people by the people should hope that it doesn’t.— Paul Krugman
The most beautiful Paul Krugman quotes that will activate your inner potential
Bad ideas flourish because they are in the interest of powerful groups.
A snarky but accurate description of monetary policy over the past five years is that the Federal Reserve successfully replaced the technology bubble with a housing bubble
The raw fact is that every successful example of economic development this past century every case of a poor nation that worked its way up to a more or less decent, or at least dramatically better, standard of living has taken place via globalization, that is, by producing for the world market rather than trying for self-sufficiency.
Rising inequality isn’t about who has the knowledge; it’s about who has the power.
Wealthy Americans who benefit hugely from a system rigged in their favor react with hysteria to anyone who points out just how rigged the system is.
So what are the effects of increasing minimum wages? Any Econ 101 student can tell you the answer: The higher wage reduces the quantity of labor demanded, and hence leads to unemployment.
Middle-class societies don't emerge automatically as an economy matures, they have to be CREATED through political action.
There are no atheists in foxholes and there are no libertarians in financial crises.
Europe is often held up as a cautionary tale, a demonstration that if you try to make the economy less brutal, to take better care of your fellow citizens when they're down on their luck, you end up killing economic progress. But what European experience actually demonstrates is the opposite: social justice and progress can go hand in hand.
I believe in a relatively equal society, supported by institutions that limit extremes of wealth and poverty. I believe in democracy, civil liberties, and the rule of law. That makes me a liberal, and I’m proud of it.
Outrageous fiscal mendacity is neither historically normal nor bipartisan.
It’s a modern Republican thing.
If you want to understand opposition to climate action, follow the money.
I think so long as fossil fuels are cheap, people will use them and it will postpone a movement towards new technologies.
Debt is one person's liability, but another person's asset.
The raw fact is that every successful example of economic development this past century ... has taken place via globalization.
I believe that the only important structural obstacles to world prosperity are the obsolete doctrines that clutter the minds of men.
Sometimes economists in official positions give bad advice;
sometimes they give very, very bad advice; and sometimes they work at the OECD.
If you want a simple model for predicting the unemployment rate in the United States over the next few years, here it is: It will be what Greenspan wants it to be, plus or minus a random error reflecting the fact that he is not quite God.
The problem with digital books is that you can always find what you are looking for but you need to go to a bookstore to find what you weren't looking for.
In our country, learned ignorance is on the rise.
What our economy needs is direct job creation by the government and mortgage-debt relief for stressed consumers. What it very much does not need is a transfer of billions of dollars to corporations that have no intention of hiring anyone except more lobbyists.
What saved the economy, and the New Deal, was the enormous public works project known as World War II, which finally provided a fiscal stimulus adequate to the economy’s needs.
The key reason executives are paid so much now is that they appoint the members of the corporate board that determines their compensation and control many of the perks that board members count on. So it's not the invisible hand of the market that leads to those monumental executive incomes; it's the invisible handshake in the boardroom.
I've always believed in expansionary monetary policy and if necessary fiscal policy when the economy is depressed.
Most work in macroeconomics in the past 30 years has been useless at best and harmful at worst.
Anyone who thinks that the last 80 years, ever since FDR took us off gold, have been a doomed venture, that strikes me as kind of cranky.
Default is not in our stars, but in ourselves.
Can we break the machine that is imposing right-wing radicalism on the United States? The scariest part is that the media is part of that machine.
Surely I'm not the only person to ask the obvious question: How different, really, is Mr. Madoff's tale from the story of the investment industry as a whole?
If you can create even the illusion of high profitability for a few years, then when the thing collapses you can walk out of the wreckage a very rich man.
Are you, or is someone you know, a gadget freak? If so, you doubtless know that Wednesday was iPhone 5 day, the day Apple unveiled its latest way for people to avoid actually speaking to or even looking at whoever they're with.
Seven habits that help produce the anything-but-efficient markets that rule the world. 1. Think short term. 2. Be greedy. 3. Believe in the greater fool 4. Run with the herd. 5. Overgeneralize 6. Be trendy 7. Play with other people's money
Our grandfathers lived in a world of largely self-sufficient, inward-looking national economies - but our great-great grandfathers lived, as we do, in a world of large-scale international trade and investment, a world destroyed by nationalism.
[I]f one asks what substantive contributions [F.
A. Hayek] made to our understanding of how the world works, one is left at something of a loss. Were it not for his politics, he would be virtually forgotten.
We know that advanced economies with stable governments that borrow in their own currency are capable of running up very high levels of debt without crisis.
The planet will continue to cook.
On the political as on the economic front it's important not to fall into the "not as bad as" trap. High unemployment isn't O.K. just because it hasn't hit 1933 levels; ominous political trends shouldn’t be dismissed just because there’s no Hitler in sight.
If Europe’s example is any guide, here are the two secrets of coping with expensive oil: own fuel-efficient cars, and don’t drive them too much.
I admit it: I had fun watching right-wingers go wild as health reform finally became law.
We're living in a Dark Age of macroeconomics.
Remember, what defined the Dark Ages wasn’t the fact that they were primitive — the Bronze Age was primitive, too. What made the Dark Ages dark was the fact that so much knowledge had been lost, that so much known to the Greeks and Romans had been forgotten by the barbarian kingdoms that followed.
When stock prices are rising, it's called ''momentum investing'';
when they are falling, it's called ''panic.''
These days, however, the main problem comes from the right - from conservatives who, unlike most economists, really do think that the free market is always right - to such an extent that they refuse to believe even the most overwhelming scientific evidence if it seems to suggest a justification for government action.
Generous unemployment benefits can increase both structural and frictional unemployment. So government policies intended to help workers can have the undesirable side effect of raising the natural rate of unemployment.
The world economy is in a nosedive, and understanding what I call "depression economics" - the weird world you get into when even a zero interest rate isn't low enough, and a messed-up financial system is dragging down the real economy - is essential if we're going to avoid the worst.
I'm especially baffled by the idea of taking insurance against a U.
S. default. If America defaults, we're talking about a chaotic world - Mad Max, more or less - in which case, who imagines that insurance claims will be honored?
It has been obvious all along, to anyone paying attention, that the politicians shouting loudest about deficits are actually using deficit hysteria as a cover story for their real agenda, which is top-down class warfare. To put it in Romneyesque terms, it's all about finding an excuse to slash programs that help people who like to watch Nascar events, even while lavishing tax cuts on people who like to own Nascar teams.
I don't want a job in the administration; I think I'm more effective carping from the sidelines.
If you're doing your job right, some substantial group of people [is] going to be mad at you.
The goal in the end is not to win elections. The goal is to change society.