It is safe to say that Paul Krugman is much smarter than I am, and that he understands more economics than I do. He generates a great deal of incisive analysis about the economy, and has often had a gift for stabbing straight through to the one underlying piece of data that gives lie to an otherwise plausible economic theory.
I want to get that out of the way, because otherwise my readers (left and right) might assume that this post is a "libertarian economics blogger makes fun of liberal economist's poor reasoning skills" special, and that's not at all why I'm writing it. Paul Krugman is a brilliant and interesting analyst. He also, like everyone else, can be wrong.
There's an interesting phenomenon that often happens when I blog something critical of Paul Krugman: some of his bigger fans turn up in my comments to argue that I am not worthy to talk, because Paul Krugman is a brilliant insightful analyst who has forgotten more economics than I will ever learn--all undoubtedly true. Over and over, they say, Paul Krugman gets it right when other commentators get it wrong. And as proof of this rare perpicacity, they offer the fact that . . . Paul Krugman called the housing bubble in May 2005.
There is rich irony in the belief that Paul Krugman must be right, and I must be wrong, because he had the foresight to call the housing bubble. That's because I saw it in 2002. As you can see, I blogged quite a bit about it before Paul Krugman wrote his first column on the topic. Neither of us, as far as I can tell, understood what that meant for the financial system. But both of us saw it coming, me a little sooner.
This is not that surprising, actually. Lots of people saw it coming. You hear people asking a lot where the financial journalists were--how they could have missed the housing bubble--and the answer is that they didn't! The Economist was writing about it even before I did, thanks to Pam Woodall, the brilliant economics editor who really may have been the first commentator to identify the global phenomenon. Housing bubble stories and op-eds regularly appeared in newspapers like, well, The New York Times. But most people weren't reading the financial press (or this blog) in 2005, and so when they discover that Paul Krugman was writing about the housing bubble way back then, it seems like amazing foresight.
Meanwhile, today I stumbled across another example of Paul Krugman's "foresight", via David Henderson. Chris Alden, a co-founder of Red Herring, blogs about an article Krugman wrote for them back in the 1990s:
He went on to make some specific predictions, all of which were either mostly or completely wrong:
"Productivity will drop sharply this year."
Nope - didn't happen. In fact productivity continued to improve, as this chart shows:
"Inflation will be back. ...In 1999 inflation will probably be more than 3 percent; with only moderate bad luck--say, a drop in the dollar--it could easily top 4 percent."
"Within two or three years, the current mood of American triumphalism--our belief that we have pulled economically and technologically ahead of the rest of the world--will evaporate."
Nope -- that didn't happen, either. Though September 11th, which happened more than three years after this article, and the Lehman Brother's collapse, which happened more than 10 years after this article was written, have certainly reduced American triumphalism. Here is where I think Krugman may have been the most right, albeit it way too early.
"The growth of the Internet will slow drastically, as the flaw in 'Metcalfe's law'--which states that the number of potential connections in a network is proportional to the square of the number of participants--becomes apparent: most people have nothing to say to each other!
By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's."
"As the rate of technological change in computing slows, the number of jobs for IT specialists will decelerate, then actually turn down; ten years from now, the phrase information economy will sound silly."
"Sometime in the next 20 years, maybe sooner, there will be another '70s-style raw-material crunch: a disruption of oil supplies, a sharp run-up in agricultural prices, or both."
Meh. While have seen oil prices spike (although they have yet to reach the annual peak we saw in 1980), this was not due to a crunch or disruption or running out of oil) but rather growth in demand.
I'm inclined to be more charitable than Alden on a couple of these, but there's no question that Krugman got some things really, really wrong.
But it doesn't follow that Krugman is an idiot who should get no respect--any more than calling the housing bubble made him an infallible genius. Krugman remains a giant intellect who is well worth reading on virtually any economic topic. He is also capable of being badly wrong about things.
You often hear people complain that pundits or analysts aren't punished for getting things wrong. But this is why they aren't: everyone gets things wrong. The question "How can you expect us to listen to Pundit Y when he got everything wrong, and our guy called things correctly" only reveals that the person asking it has managed to forget all the blunders "our guy" made.
What pundits give you is not a perfect map of the future--the only people who succeed in that are characters in historical novels written by an author who already knows what happened. What's important is their thought process--do they point you to arguments you hadn't considered? Do they find data you ought to know about? Do they force you to challenge your own decisions?
Paul Krugman succeeds on that score, even if his crystal ball is a little cloudy.
The political commentator may be more committed to the Republican nominee’s platform than he is.
Donald Trump has just betrayed Ann Coulter. Which is a dangerous thing to do.
This week, Coulter released her new book, In Trump We Trust. As the title suggests, it’s a defense of Trump. But more than that, it’s a defense of Trumpism. Most Trump surrogates contort themselves to defend whatever The Donald says, no matter its ideological content. They’re like communist party functionaries. They get word from the ideologists on high, and regurgitate it as best they can.
Coulter is different. She’s an ideologist herself. She realized the potency of the immigration issue among conservatives before Trump did. On June 1 of last year, she released Adios America, which devotes six chapters to the subject of immigrants and rape. Two weeks later, Trump—having received an advanced copy—famously picked up the thread in his announcement speech.
A new anatomical understanding of how movement controls the body’s stress response system
Elite tennis players have an uncanny ability to clear their heads after making errors. They constantly move on and start fresh for the next point. They can’t afford to dwell on mistakes.
Peter Strick is not a professional tennis player. He’s a distinguished professor and chair of the department of neurobiology at the University of Pittsburgh Brain Institute. He’s the sort of person to dwell on mistakes, however small.
“My kids would tell me, dad, you ought to take up pilates. Do some yoga,” he said. “But I’d say, as far as I’m concerned, there's no scientific evidence that this is going to help me.”
Still, the meticulous skeptic espoused more of a tennis approach to dealing with stressful situations: Just teach yourself to move on. Of course there is evidence that ties practicing yoga to good health, but not the sort that convinced Strick. Studies show correlations between the two, but he needed a physiological mechanism to explain the relationship. Vague conjecture that yoga “decreases stress” wasn’t sufficient. How? Simply by distracting the mind?
Donald Trump’s new campaign CEO, who is registered to vote at an empty house in Florida, may be as scandal-plagued as his predecessors.
Barely a week into the job, Donald Trump’s new campaign CEO is already facing harsh scrutiny over a 20-year-old domestic-violence charge and an allegation of voter-registration fraud.
On Thursday night, the New York Postand other outlets reported that Stephen Bannon was charged with misdemeanor domestic violence, battery, and dissuading a witness in 1996, after an altercation with his then-wife in Santa Monica, California. According to a police report, Bannon’s spouse said he pulled at her neck and wrist. A spokesman told Politico that Bannon was never questioned by police and pleaded not guilty. The charges were dropped around the time that the couple divorced later that year. In divorce proceedings, she outlined several vulgarities Bannon allegedly used.
In the name of emotional well-being, college students are increasingly demanding protection from words and ideas they don’t like. Here’s why that’s disastrous for education—and mental health.
Something strange is happening at America’s colleges and universities. A movement is arising, undirected and driven largely by students, to scrub campuses clean of words, ideas, and subjects that might cause discomfort or give offense. Last December, Jeannie Suk wrote in an online article for The New Yorker about law students asking her fellow professors at Harvard not to teach rape law—or, in one case, even use the word violate (as in “that violates the law”) lest it cause students distress. In February, Laura Kipnis, a professor at Northwestern University, wrote an essay in The Chronicle of Higher Education describing a new campus politics of sexual paranoia—and was then subjected to a long investigation after students who were offended by the article and by a tweet she’d sent filed Title IX complaints against her. In June, a professor protecting himself with a pseudonym wrote an essay for Vox describing how gingerly he now has to teach. “I’m a Liberal Professor, and My Liberal Students Terrify Me,” the headline said. A number of popular comedians, including Chris Rock, have stopped performing on college campuses (see Caitlin Flanagan’s article in this month’s issue). Jerry Seinfeld and Bill Maher have publicly condemned the oversensitivity of college students, saying too many of them can’t take a joke.
If Hillary Clinton beats Donald Trump, her party will have set a record in American politics.
If Donald Trump can’t erase Hillary Clinton’s lead in the presidential race, the Republican Party will cross an ominous milestone—and confront some agonizing choices. Democrats have won the popular vote in five of the six presidential elections since 1992. (In 2000, Al Gore won the popular vote but lost the Electoral College and the White House to George W. Bush.) If Clinton maintains her consistent advantage in national and swing-state polls through Election Day, that means Democrats will have won the popular vote in six of the past seven presidential campaigns.
Since the 1828 election of Andrew Jackson that historians consider the birth of the modern two-party system, no party has ever won the presidential popular vote six times over seven elections. Even the nation’s most successful political figures have fallen short of that standard.
Last night, in Time Capsule #88, I noted the deafening silence of Republican officialdom, after Hillary Clinton delivered her calmly devastating indictment of Donald Trump’s racist themes.
After this frontal attack on their own party’s chosen nominee, the rest of the GOP leadership said ... nothing. The cable-news Trump advocates were out in force, but senators? Governors? Previous candidates? Wise men and women of the party? Crickets.
A reader who is not a Trump supporter says there’s a logic to the plan:
I think you might be missing the GOP strategy here regarding Sec. Clinton’s bigotry speech, and the fact that no Republican came forward to defend Donald Trump. Republicans know that she spoke the truth—the indefensible truth about Donald Trump—and they want to squelch any discussion about it. That’s what they are doing.
Because they don’t want this speech on the airwaves, debated on panels, over several news cycles, with more and more of the dirty laundry getting debated in the mainstream news cycles, leading the Nightly News with dramatic music. Screaming headlines. Any any—ANY—statement by a Republican will trigger that discussion that no GOPer wants.
The mainstream news guys are sitting there at their email boxes, waiting, waiting, for statements, so they can write a piece on it. Benjy Sarlin mentioned it on Twitter, which you probably saw. [JF: I have now] And a couple of other journos, agreed.
But without some outraged statement from Ryan, Cruz, anybody, the mainstream journos have nothing to write about, there is no news cycle, no panels, no screaming headlines, no multi-news cycle. Just a Wow! Clinton gave a rough speech!” End of story. And that’s the strategy. Bury this story. And it’s working.
That’s how the GOP handles this kind of story. And it works just fine, every time. The mainstream journos can't find a both-sides hook, and they are nervous about this alt-right stuff anyway, so the story dies. Journos fear the brutality of GOP pushback. So it goes. Every. Time.
Contrast that with the non-story about the Clinton Foundation. Every GOPer was sending out a truckload of statements to keep that story going. Chuck Todd has stated in the past that he—they—have no choice but to write about whatever the GOP is upset about because they all put their shoulder to the wheel. And the GOP always has something for journos to write about. Controversy! And no fear of brutality from the Democrats. That’s how that goes.
The candidate’s campaign bought $55,000 worth of his newest book, Crippled America. But did they follow the law?
Sales of Donald Trump’s latest book, Crippled America, were decent, if not great—they easily beat out every other Republican candidate except for Ben Carson, according to Nielsen. But the Trump campaign found one way to boost sales: buying the books themselves.
The Daily Beast spotted in FEC filings that Team Trump purchased more than $55,000 worth of the book. (It’s been re-released in paperback with the sunnier title, Great Again.) Now, candidates buying up their own books is nothing new, but there’s a legal issue here. Campaigns can buy books in bulk assuming they don’t pay royalties, because if they do, then the campaign has effectively paid the candidate—which is against the law.
“It’s fine for a candidate’s book to be purchased by his committee, but it’s impermissible to receive royalties from the publisher,” legal expert Paul S. Ryan told the Beast. “That amounts to an illegal conversion of campaign funds to personal use. There’s a well established precedent from the FEC that funds from the campaign account can’t end up in your own pocket.”
Hundreds of thousands were watched from above at the behest of the local police department. And the program operated for months in secret.
Ask the residents of any major American city to vote on a program of total aerial surveillance––where the cops would record footage of everything that happened within municipal borders, then store the high-resolution video on hard drives, so that they could effectively go back in time, tracing the outdoor movements of any individual––and the proposal would, at the very least, trigger furious debate.
But what if the police didn’t ask permission? What if they began recording their city’s residents from above without even bothering to inform their elected overseers?
That is what the police in Baltimore have just done.
It is illegal, in Maryland, to record a phone call without informing the person on the other end. Yet Baltimore police have been using an eye in the sky to surveil the whole city for months on end, recording hi-resolution footage and storing it on hard drives so that the movements of residents can be accessed at any time in the future.
The global education pioneer eases students into the classroom.
Heading into my first year of teaching in Helsinki I felt pretty nervous. One of my graduate-school professors—a former Massachusetts Teacher of the Year—had warned me that Finnish students were academically advanced, especially in math. Indeed, Finland’s students had excelled on international standardized tests like the PISA for more than a decade. But it wasn’t just those high-performing Finnish students that intimidated me. Their teachers did, too.
If I had chosen to pursue master’s-level training as an elementary-school teacher in Finland (instead of the United States), I would have applied to the small handful of teacher-training universities, where annual acceptance rates hover around 10 percent. These programs are so selective, claimed The Atlantic journalist Amanda Ripley in her book, The Smartest Kids in the World, they’re “on the order of MIT.” Furthermore, Finland’s classroom teacher-training programs require five years of coursework, practicum, and thesis writing. The Finnish version made my two-year master’s degree in elementary education, through a non-selective college in the Boston area, look quite humble.
City dwellers spend nearly every moment of every day awash in Wi-Fi signals. Homes, streets, businesses, and office buildings are constantly blasting wireless signals every which way for the benefit of nearby phones, tablets, laptops, wearables, and other connected paraphernalia.
When those devices connect to a router, they send requests for information—a weather forecast, the latest sports scores, a news article—and, in turn, receive that data, all over the air. As it communicates with the devices, the router is also gathering information about how its signals are traveling through the air, and whether they’re being disrupted by obstacles or interference. With that data, the router can make small adjustments to communicate more reliably with the devices it’s connected to.