Tag Archives: Paul Krugman

Paul Krugman Was (Probably) Right!

It pains me to admit this, but Paul Krugman was probably correct about something. (Though, modern-day Krugman might disagree.)

I’d point you to this excellent NRO item:

But what if 2014’s jobs boom is mostly thanks to the expiration of a program that the Obama administration and Democrats fervently pushed to renew?

That’s the finding of a new NBER working paper from three economists — Marcus Hagedorn, Kurt Mitman, and Iourii Manovskii — who contend that the ending of federally extended unemployment benefits across the country at the end of 2013 explains much of the labor-market boom in 2014.

About 60 percent of the job creation in 2014, 1.8 million jobs, they find, can be attributed to the end of the extended-benefits program. That’s a huge amount, and suggests that long-term unemployment benefits, while there’s a good charitable case for them, could have played a big role in the ongoing lassitude of our labor market. (Indeed, an earlier working paper from a few of the same authors argued that extended benefits raised the unemployment rate during the Great Recession by three percentage points; see a summary of that paper here.)

This brings me back down memory lane, nearly five years ago, to my days as a young and brash aide to Senator Jon Kyl (R-AZ) in 2010.

Here’s what Krugman sneered in his column back then about floor remarks made by my boss regarding the large expansion of unemployment insurance:

Here’s what Senator Jon Kyl of Arizona, the second-ranking Republican in the Senate, had to say when defending Mr. Bunning’s position (although not joining his blockade): unemployment relief “doesn’t create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.”

To Krugman fanatics and haters, it’s not news that Krugman will write one thing, and then, years later with a newspaper column, write something completely different.

So, we went to the Library of Congress and pulled out the text book he had written with his wife, called “Macroeconomics” and look what we found:

Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker’s incentive to quickly find a new job. Generous unemployment benefits in some European countries are widely believed to be one of the main causes of “Eurosclerosis,” the persistent high unemployment that affects a number of European countries.

Golly.

So, a letter to the NY Times — something they are known for not publishing if critical — was drafted. And wouldn’t you know? It got published.

Though, we never did hear back from Paul Krugman. But I hope pre-NYT Krugman is feeling somewhat vindicated.

Here’s the letter:

jk nyt unemployment

Tuesday Links

78810001

Opening Links

Hey Girl It’s Paul Ryan Meme

Fox News: 5 arrested for allegedly trying to blow up Ohio bridge

Newsnet5: Occupy Cleveland cancels ‘May Day’ rally, says bomb suspects involved with movement

Regular Links:

Mitchell: The Moral Case for Capitalism and Small Government

Marginal Revolution: Paul vs. Paul debate | video

Funny or Die: West Wing Reunion

Boston Herald: Elizabeth Warren’s embattled campaign: Cherokee tie found 5 generations ago

Deadspin: Twitter Asshole Joe Cowley Had Me Fired From The Sun-Times

TWS: Richard Mourdock may be on his way to toppling Dick Lugar | Obama Team Scrubs Solyndra from Latest Campaign Ad

ProfSwitzer: Farewell to his union

Boom. Roasted.

Roll Call: Landrieu Chief of Staff Is not Trapped in the Philippines

AFF: Writing well is key

Daily Caller: Lovitz explains his anti-Obama taxation rant to Dr. Drew [VIDEO]

Elizabeth Santorum joins HotAir.com

JimSwifts in the news

Gizmodo: An Alabama Police Department Has No Idea Why It Owns Two Drones

CE: Tire Tariffs: Saving Jobs at $900,000 Apiece

Deadspin: Is An ESPN Columnist Scamming People On The Internet?

Tuesday Links

White Castles at the Capitol

March Madness = Over

ARLNOW: Federal Employees Can Now Go Swimming at Ft. Myer

Reason: Another Obama Administration Attempt at Solar Power Central Planning Goes Bust | “Rent-a-Vet Scams” One More Reason to Shut Down Small Business Administration

Wash Times: Metro transit police: Not quite the region’s finest

GGW: Can federal offices change neighborhoods for the better?

IJReview: The Tax System Explained in Beer

MR: What Export-Oriented America Means

Daily Krugman Rebuttal: Block Grants and Bad Faith

Thunder Buddies

Carpe Diem: Matt Ridley’s 17 Reasons to be Cheerful

WMATA’s Union Newsletter circa 2008 (seriously, read it)

Instagram is here for Android. I can finally join the hipsters and their iphones

Gizmodo: Instagram for Android Hands On: Hello, Old Friend

Sowell: The invincible dogma

CNN: ‘Dumb and Dumber 2’ filming this year, with Jim Carrey and Jeff Daniels

HUFFPO: David Englin, Virginia Lawmaker, Acknowledges Affair While Declining Re-Election Bid (David Englin is my Delegate in Virginia, I’ve written to/about him over the years.)

City Beat: God Save the Queen

OTB: New Arizona Law Seeks To Purge All Mean Words From The Internet

Kyl: The ‘Buffett Rule’ Is Not A Serious Tax Proposal

Friday Funday Links

Caps

Bottle Caps at the FamousDC Party

Reuters: Facebook “defriending” led to double murder, police say

Obama on a roof?

Reason: America’s Unsung Industrial Might; Or, Take a Half-Bow, Bob Dylan!

BusinessWeek: Paul Krugman vs. the world

Alinskyites vs. Romney (We’re going to see the redux soon)

Gawker: The cover letter with terrifying efficiency

Proof Joe Biden has hair plugs (Sorry, Liz Mascot)

McArdle: Will Inequality Keep Getting Worse?

Cochrane: The Real Trouble With the Birth-Control Mandate

Microsoft really missed out on the opportunity to make this ad

NBC Miami: Judge Orders Florida Man To Take His Wife on a Date at Red Lobster

Fox Business: Google Wallet hacked, again

LitReactor: Improve Your Writing by Avoiding These Twenty Common Grammar Mistakes Almost Everyone Makes

If Gizmodo thinks these glasses are cool (no offense) you shouldn’t wear them. Ever.