Archive for the ‘Uncategorized’ Category

Krugman’s blog, 5/25/16

May 26, 2016

There was one post yesterday, “Talking Global Inequality:”

Branko Milanovic and his CUNY Grad Center colleagues discuss his excellent new book:

(Fingers crossed that the video embedded…)

 

Krugman’s blog, 5/17/16

May 18, 2016

There were two posts yesterday.  The first was “Democratic Groundhog Day:”

Ugh. More primaries today. Do they matter?

Not for the nomination. Clinton has won — her big victories in the mid-Atlantic states ended any chance that Sanders can catch up on pledged delegates or popular vote, and he’s not going to convince superdelegates to overturn the will of the voters. Again, the math: Clinton leads by 280 pledged delegates, with 897 left. To overtake, Sanders would need to win the remaining contests by a 280/897 margin, or 31 percent. This is not going to happen.

This is very much true even if he wins both primaries tonight. KY and OR are both very favorable states for Sanders, basically because they’re very white. Alan Abramowitz predicts Sanders +6 in OR, +1 in KY; Benchmark Politics predicts narrow Clinton win in KY, narrow Sanders win in OR. Suppose Abramowitz is right. Then Sanders might narrow the gap by 5 delegates — but there will be only 781 left to go, and his required margin would rise to 275/781 or 35 percent. And the demography gets much worse for him in the remaining states.

But here’s the thing: a lot of Sanders supporters don’t understand this reality — 29 percent still believe that he’s the likely nominee, and another 11 percent aren’t sure. If news reports say that he “won” tonight, they’ll persist in their illusions — and the narrative that Clinton is somehow stealing the nomination will continue to fester.

Sanders could end all of this at any point. He doesn’t even have to drop out, all he needs to do is talk honestly about the realities — and clearly condemn the kind of behavior we saw in Las Vegas over the weekend. But I’m losing hope that he will ever do the right thing.

Yesterday’s second post was “Questions of Character:”

Like a lot of people, I was shocked by the statement Bernie Sanders put out about Nevada. No hint of apology for his supporters’ behavior, lots of accusations about a “rigged” process when the issue in Nevada was whether Clinton should get more delegates in a state where she won the vote. And the general implication that the nomination is somehow being stolen when the reality is that Clinton won because a large majority of voters chose to support her.

But maybe we shouldn’t have been shocked. It has been obvious for quite a while that Sanders — not just his supporters, not even just his surrogates, but the candidate himself — has a problem both in facing reality and in admitting mistakes. The business with claiming that Clinton only won conservative states in the deep South told you that; and even before, there were strong indications that he would not accept defeat gracefully or even rationally.

Here’s what I wrote more than a month ago:

Is Mr. Sanders positioning himself to join the “Bernie or bust” crowd, walking away if he can’t pull off an extraordinary upset, and possibly helping put Donald Trump or Ted Cruz in the White House? If not, what does he think he’s doing?

The Sanders campaign has brought out a lot of idealism and energy that the progressive movement needs. It has also, however, brought out a streak of petulant self-righteousness among some supporters. Has it brought out that streak in the candidate, too?

I’m afraid that we now know the answer. And I feel sorry for all the genuinely idealistic, well-meaning people who got caught up in this terrible mess.

If you don’t read Matt Taibbi you should…

April 20, 2016

Here’s a link to his latest piece in Rolling Stone.  It’s a must read:

http://www.rollingstone.com/politics/news/why-is-the-obama-administration-trying-to-keep-11-000-documents-sealed-20160418

 

Krugman’s blog, 4/9/16

April 11, 2016

There was one post on Saturday, and none yesterday.  Saturday’s post was “The Donald and the Veg-O-Matic:”

I’ve written on a number of occasions about the Veg-O-Matic temptation — the urge to claim that your preferred policy solves all problems — it slices! It dices! It purees! It creates jobs! It raises productivity! It takes off weight without diet or exercise! There’s also the reverse version, in which a policy you dislike does everything bad — It’s inflationary! It’s contractionary! It causes acne!

When you see Veg-O-Matic claims, you should always be suspicious. Sometimes a policy does kill two or more birds with one stone — there’s a very good case that infrastructure investment under current conditions, with interest rates very low and economies still under capacity, would create jobs now, enhance long-run growth, and even improve fiscal prospects. But conclusions like that shouldn’t be accepted without a lot of hard thinking and self-criticism; you need to bend over backward to avoid falling into wishful thinking.

That consideration in itself should have flashed warning signs about, to take one important example, the embrace by Very Serious People of the doctrine of expansionary austerity — it was all too obvious that the austerians wanted a reason to cut government spending, and they should have been extremely wary of studies purporting to say that doing so would actually create jobs in a depressed economy. The fact that they instead seized on those studies was a very bad sign.

In modern America Veg-O-Matic economics has tended to be a right-wing thing, for a couple of reasons. One is that if your party’s central mission is to comfort the comfortable and afflict the afflicted, you need to claim that all kinds of wonderful side effects will take place from what might otherwise look like a combination of greed and cruelty. Another is that the parties are different; the monolithic GOP has, until just now, been able to get all its followers declaring that we’re at war with Eurasia, or Eastasia, with no awkward challenges from independent-minded wonks. The Democrats are a coalition in which the wonks have a fair bit of autonomy, and at least believe that they have a professional ethos to uphold.

That said, the Veg-O-Matic temptation exists for everyone. Yes, we see some of it in the populist uprising within the Democratic party, where anyone questioning the happy talk can be dismissed as a corrupt tool of the corporations. But the big example of Veg-O-Matic reasoning I see right now — in this case the anti-VOM version — is coming in what we might call the mainstream critique of Donald Trump.

I come here not to praise Trump — God no — and would be happy to see his political ambitions buried, with maximum ignominy. He would destroy American civil society; destroy our hopes of containing climate change; destroy U.S. influence by trying to bully everyone in sight. It’s very scary that there’s any chance that he might end up with his (long) finger on the button.

But too many anti-Trump critics seem to have settled on one critique that happens not to be right: the claim that a turn to protectionism would cause vast job losses. Sorry, that’s just not a claim justified by either theory or history.

Protectionism reduces world exports, but it also reduces world imports, so that the effect on overall demand is a wash; textbook economic models just don’t say what conventional wisdom is asserting here.

History doesn’t support this line of attack either. Protection in the 1930s was a result, not a cause, of the depression; the early postwar years, when tariffs were still high and exchange controls were pervasive, were marked by very full employment in many countries.

Why, then, focus on such a weak argument against a truly despicable candidate? I think I know the answer: it’s an argument that doesn’t involve taking on bad things in the Trump agenda that differ from the agenda of other Republicans only in degree — as Matt O’Brien says, on tax policy Trump is just Paul Ryan on steroids.

But bad arguments are bad arguments, even if used against a bad guy. And the choice of this argument is telling us something about what’s wrong with a lot of people beyond Trump.

Bobo, solo

March 15, 2016

In “The Shame Culture” Bobo moans that a new moral system is coming into place.  In the comments “Larry” from Garrison, NY had this to say:  “Funny how Brooks and Crouch focus only on the perceived transgressions of the left and not on the much larger and dangerous ones of the right. Any sane observer would say that the totally baseless ravings of the right regarding how Christianity is under attack, or the war on Christmas is infinitely worse than some teenager in his mom’s basement tweeting some inane message on his iPhone.  The shame culture of the right is organized and funded by craven right wing billionaires who are trying to shape the political landscape while the shamers on the left are individuals who simply have too much time on their hands and will grow out of it when they graduate from college.”  Here’s Bobo:

In 1987, Allan Bloom wrote a book called “The Closing of the American Mind.” The core argument was that American campuses were awash in moral relativism. Subjective personal values had replaced universal moral principles. Nothing was either right or wrong. Amid a wave of rampant nonjudgmentalism, life was flatter and emptier.

Bloom’s thesis was accurate at the time, but it’s not accurate anymore. College campuses are today awash in moral judgment.

Many people carefully guard their words, afraid they might transgress one of the norms that have come into existence. Those accused of incorrect thought face ruinous consequences. When a moral crusade spreads across campus, many students feel compelled to post in support of it on Facebook within minutes. If they do not post, they will be noticed and condemned.

Some sort of moral system is coming into place. Some new criteria now exist, which people use to define correct and incorrect action. The big question is: What is the nature of this new moral system?

Last year, Andy Crouch published an essay in Christianity Today that takes us toward an answer.

Crouch starts with the distinction the anthropologist Ruth Benedict popularized, between a guilt culture and a shame culture. In a guilt culture you know you are good or bad by what your conscience feels. In a shame culture you know you are good or bad by what your community says about you, by whether it honors or excludes you. In a guilt culture people sometimes feel they do bad things; in a shame culture social exclusion makes people feel they are bad.

Crouch argues that the omnipresence of social media has created a new sort of shame culture. The world of Facebook, Instagram and the rest is a world of constant display and observation. The desire to be embraced and praised by the community is intense. People dread being exiled and condemned. Moral life is not built on the continuum of right and wrong; it’s built on the continuum of inclusion and exclusion.

This creates a set of common behavior patterns. First, members of a group lavish one another with praise so that they themselves might be accepted and praised in turn.

Second, there are nonetheless enforcers within the group who build their personal power and reputation by policing the group and condemning those who break the group code. Social media can be vicious to those who don’t fit in. Twitter can erupt in instant ridicule for anyone who stumbles.

Third, people are extremely anxious that their group might be condemned or denigrated. They demand instant respect and recognition for their group. They feel some moral wrong has been perpetrated when their group has been disrespected, and react with the most violent intensity.

Crouch describes how video gamers viciously went after journalists, mostly women, who had criticized the misogyny of their games. Campus controversies get so hot so fast because even a minor slight to a group is perceived as a basic identity threat.

The ultimate sin today, Crouch argues, is to criticize a group, especially on moral grounds. Talk of good and bad has to defer to talk about respect and recognition. Crouch writes, “Talk of right and wrong is troubling when it is accompanied by seeming indifference to the experience of shame that accompanies judgments of ‘immorality.’”

He notes that this shame culture is different from the traditional shame cultures, the ones in Asia, for example. In traditional shame cultures the opposite of shame was honor or “face” — being known as a dignified and upstanding citizen. In the new shame culture, the opposite of shame is celebrity — to be attention-grabbing and aggressively unique on some media platform.

On the positive side, this new shame culture might rebind the social and communal fabric. It might reverse, a bit, the individualistic, atomizing thrust of the past 50 years.

On the other hand, everybody is perpetually insecure in a moral system based on inclusion and exclusion. There are no permanent standards, just the shifting judgment of the crowd. It is a culture of oversensitivity, overreaction and frequent moral panics, during which everybody feels compelled to go along.

If we’re going to avoid a constant state of anxiety, people’s identities have to be based on standards of justice and virtue that are deeper and more permanent than the shifting fancy of the crowd. In an era of omnipresent social media, it’s probably doubly important to discover and name your own personal True North, vision of an ultimate good, which is worth defending even at the cost of unpopularity and exclusion.

The guilt culture could be harsh, but at least you could hate the sin and still love the sinner. The modern shame culture allegedly values inclusion and tolerance, but it can be strangely unmerciful to those who disagree and to those who don’t fit in.

Strange as it may seem life is possible without constantly twitter-twatting…

Krugman’s blog, 2/8 and 2/9/16

February 10, 2016

There were two posts on Monday and one yesterday.  Monday’s first post was “Structural Humbug Revisited:”

Bryan Caplan reports that he has just won a bet with Tyler Cowen over whether unemployment would ever drop below 5 percent. It might be worth remembering the context.

You see, when the Great Recession struck — a demand-side shock if ever there was one — it took no time at all for a strange consensus to develop in elite opinion, to the effect that a large part of the rise in unemployment was “structural,” and could not be reversed simply by a recovery in demand. Workers just didn’t have the right skills, you see. Many of us argued at length that this was foolish. If skills were the problem, where were the occupations with rapidly rising wages? I pointed out that people said the same thing during the Great Depression, only to see it disproved when we finally got a big fiscal stimulus called World War II.

But the doctrine somehow just got stronger and stronger in elite circles, because it sounded serious and judicious, unlike the seemingly flighty proposition that all we needed was more spending. In fact, the notion that our unemployment problem was mainly structural began to be presented as a simple fact rather than as a hypothesis most professional economists rejected.

And here we are.

Monday’s second post was “Hard Money Men:”

So what will happen in NH tomorrow? I have no idea. We must dispel with this notion that anyone has the slightest idea what they are doing. However, there seems to be a real possibility for one thing that seemed unlikely before the RubiOS bug manifested itself: that John Kasich will come in second on the Republican side.

If he does, there will be an outpouring of praise from self-proclaimed centrists, who will declare Kasich the sensible, responsible Republican of their dreams. So let me attempt what will surely be a futile preemptive strike, and note that on economic policy — which sort of matters — Kasich is terrible, arguably worse than the rest of the GOP field.

It’s not just his balanced-budget fetishism, which would be disastrous in an economic crisis. He’s also a hard-money man.

Ted Cruz has gotten some scrutiny, although not enough, for hisgoldbuggism. But Kasich, when asked why wages have stagnated,gave as his number one reason “because the Federal Reserve kept interest rates so low” — because this diverted investment into stocks, or something. No, it doesn’t make any sense — but it tells you that he is viscerally opposed to monetary as well as fiscal stimulus in the face of high unemployment.

So no, Kasich isn’t sensible. He’s just off the wall in ways that differ in some ways from the GOP mainstream. If he’d been president in 2009-10, we’d have had a full replay of the Great Depression.

Yesterday’s post was “Bonds on the Run:”


Bloomberg News

While we obsess over domestic politics — not that there’s anything wrong with that, since a lot depends on whether the next leader of the world’s most powerful nation is a racist xenophobe, a sinister theocrat, an empty suit, or all of the above — something scary is going on in financial markets, where bond prices in particular are indicating near-panic.

I know, Paul Samuelson famously quipped that the stock market had predicted nine of the last five recessions; the wisdom of crowds is often overrated. Still, bond markets are a bit less flighty than stocks, and also more closely tied to the economic outlook. (A weak economy has mixed effects on stocks — low profits but also low interest rates — while it has an unambiguous effect on bonds.) What plunging rates tell us is that markets are expecting very weak economies and possibly deflation for years to come, if not full-blown crisis.

Among other things, such a world would be a very bad place into which to elect a member of a party that has spent the past 7 years inveighing against both fiscal and monetary stimulus, and has learned nothing from the utter failure of its predictions to come true.

Krugman’s blog, 11/16/15

November 17, 2015

There was one post yesterday, “Serious Delusions:”

Greg Sargent mocks pundits declaring that the attacks in Paris will finally convince Republican primary voters that they need to get serious, and deflate the Trump/Carson bubble. This time it will really happen!

Or not.

As Sargent says, these pundits have been wrong again and again — and with holidays coming up and then the start of actual voting, there isn’t much time for bubble-deflation left. But there’s more.

For one thing, who exactly are the serious candidates on national security? Jeb!, who thinks that a relative handful of terrorists can destroy the West, one rock concert at a time? Rubio, who mumbled something about a clash of civilizations?

For another, pretty much the same people claiming that it’s time to get serious are attacking Democrats for … not using the right catchphrases, out of petty concerns like trying not to insult a whole religion. Say it loud and proud: radicalIslamradicalIslamradicalIslam. See? Terrorism defeated.

Finally, remember how we got serious after 9/11?

Given what we’ve seen in the past, this might even favor Trump, who can yell “You’re fired!” at the terrorists, or Carson, who might be able to defeat them with the help of Klingon Jesus.

Update: A reminder of how knowledgable Bush and Rubio are about foreign policy — remember Chang, the mystic warrior?

Happy July 4!

July 4, 2015

We’ve got nothing today, nada, zip, zilch.  Nocera and Collins are off, and Prof. Krugman didn’t post to his blog.  Have a safe and happy 4th — go grill something!

Free day!

June 20, 2015

Both Ms. Collins and Mr. Nocera are off today, so there’s nothing to report about the 2016 Clown Car, and no water to carry for Big Energy.  Go play outside.

Brooks and Nocera

June 2, 2015

Poor, delicate Bobo is all upset by “The Campus Crusaders.”  He whines that well-intentioned moral fervor on campuses today often slides into a dangerous type of zealotry.  In the comments “HeyNorris” from Paris had this to say:  “Our Mr. Brooks never fails to delight when he tut-tuts over-reaching liberals – in this case college students – while willfully ignoring similar behaviors exhibited by his dear over-reaching conservative friends.”  (And if anyone should know about dangerous zealotry it’s certainly a Republican, right Bobo?)  Mr. Nocera has a question:  “Is Motown Getting Its Groove Back?”  He says there’s something happening in Detroit, with entrepreneurship and budding manufacturing taking hold.  Here’s Bobo, straight from the fainting couch:

Every generation has an opportunity to change the world. Right now, college campuses around the country are home to a moral movement that seeks to reverse centuries of historic wrongs.

This movement is led by students forced to live with the legacy of sexism, with the threat, and sometimes the experience, of sexual assault. It is led by students whose lives have been marred by racism and bigotry. It is led by people who want to secure equal rights for gays, lesbians and other historically marginalized groups.

These students are driven by noble impulses to do justice and identify oppression. They want to not only crack down on exploitation and discrimination, but also eradicate the cultural environment that tolerates these things. They want to police social norms so that hurtful comments are no longer tolerated and so that real bigotry is given no tacit support. Of course, at some level, they are right. Callous statements in the mainstream can lead to hostile behavior on the edge. That’s why we don’t tolerate Holocaust denial.

But when you witness how this movement is actually being felt on campus, you can’t help noticing that it sometimes slides into a form of zealotry. If you read the website of the group FIRE, which defends free speech on campus, if you read Kirsten Powers’s book, “The Silencing,” if you read Judith Shulevitz’s essay “In College and Hiding From Scary Ideas” that was published in The Times in Sunday Review on March 22, you come across tales of professors whose lives are ruined because they made innocent remarks; you see speech codes that inhibit free expression; you see reputations unfairly scarred by charges of racism and sexism.

The problem is that the campus activists have moral fervor, but don’t always have settled philosophies to restrain the fervor of their emotions. Settled philosophies are meant to (but obviously don’t always) instill a limiting sense of humility, a deference to the complexity and multifaceted nature of reality. But many of today’s activists are forced to rely on a relatively simple social theory.

According to this theory, the dividing lines between good and evil are starkly clear. The essential conflict is between the traumatized purity of the victim and the verbal violence of the oppressor.

According to this theory, the ultimate source of authority is not some hard-to-understand truth. It is everybody’s personal feelings. A crime occurs when someone feels a hurt triggered, or when someone feels disagreed with or “unsafe.” In the Shulevitz piece, a Brown student retreats from a campus debate to a safe room because she “was feeling bombarded by a lot of viewpoints that really go against” her dearly and closely held beliefs.

Today’s campus activists are not only going after actual acts of discrimination — which is admirable. They are also going after incorrect thought — impiety and blasphemy. They are going after people for simply failing to show sufficient deference to and respect for the etiquette they hold dear. They sometimes conflate ideas with actions and regard controversial ideas as forms of violence.

Some of their targets have been deliberately impious. Laura Kipnis is a feminist film professor at Northwestern University who wrote a provocative piece on sexual mores on campus that was published in February. She was hit with two Title IX charges on the grounds, without evidence, that her words might have a “chilling effect” on those who might need to report sexual assaults.

Other targets of this crusade had no idea what they were getting into. A student at George Washington wrote an essay on the pre-Nazi history of the swastika. A professor at Brandeis mentioned a historic slur against Hispanics in order to criticize it. The scholar Wendy Kaminer mentioned the N-word at a Smith College alumni event in a clearly nonracist discussion of euphemism and free speech.

All of these people were targeted for purging merely for bringing unacceptable words into the public square. As Powers describes it in “The Silencing,” Kaminer was accused of racial violence and hate speech. The university president was pilloried for tolerating an environment that had been made “hostile” and “unsafe.”

We’re now in a position in which the students and the professors and peers they target are talking past each other. The students feeling others don’t understand the trauma they’ve survived; the professors feeling as though they are victims in a modern Salem witch trial. Everybody walks on egg shells.

There will always be moral fervor on campus. Right now that moral fervor is structured by those who seek the innocent purity of the vulnerable victim. Another and more mature moral fervor would be structured by the classic ideal of the worldly philosopher, by the desire to confront not hide from what you fear, but to engage the complexity of the world, and to know that sometimes the way to wisdom involves hurt feelings, tolerating difference and facing hard truths.

Now here’s Mr. Nocera, writing from Detroit:

Tom Kartsotis, the wealthy co-founder of Fossil, has no connection to the Motor City. He lives in Dallas, where he now oversees a handful of ventures he’s invested in. In early 2011, he decided to build a small watch factory that would sell high-quality watches that were priced, as he puts it, “at the entry point of luxury.”

He also wanted to make these watches in America. “So many big companies have sourcing infrastructures whose knee-jerk reaction is to head to China,” he said. He couldn’t compete with China at the low end of the market — nobody can. But he felt that the kind of watches he had in mind — priced between $450 and $600 at the low end, with a distinctive but classic design — could be made competitively in the United States. So he decided to put his new factory here in Detroit, a city once renowned for its manufacturing prowess that, in recent times, has needed all the help it can get.

That original idea turned into a company called Shinola. It has eight retail outlets and employs around 375 people, most of them in Detroit. Although those stylized watches are its biggest sellers — the company expects to sell between 150,000 and 180,000 this year — it also designs and makes bicycles, leather goods and other well-crafted, high-end products. Not only are those products built in Detroit, but Shinola also tries to buy the parts it needs from other American companies. Its leather, for instance, comes from the Horween Leather Company, a Chicago tannery more than a century old. Its bicycle frames are shipped from a company run by a fourth-generation Schwinn.

Although it was a philanthropic impulse that moved Kartsotis to set up shop in Detroit, it has turned out to be a very good business decision. The space Shinola needed to build its factory was cheap. There was also plenty of talent — engineers, for sure, but also former auto assembly-line workers, people eager to work who Shinola could train to be watchmakers. When I visited the watch factory recently, I saw rows of employees bent over their desks, focusing intently as they placed tiny, intricate parts inside the unassembled watches.

Indeed, to spend any time in Detroit these days is to be amazed at the extent to which it is humming with entrepreneurial activity. Dan Gilbert, the founder and chairman of Quicken Loans — which he relocated to Detroit — has bought more than 70 buildings and is converting some of them into office space for small businesses. There are other buildings with common work spaces and tools like 3-D printers than can be shared. The city’s government and, especially, its foundations are focused on helping peoplewho want to start a new business. I spoke with a woman named Julie James, who, with her four sisters, manufactures a brand of juices they call Drought. It employs 32 people. Another company, The Floyd Leg, makes handsome, colorful legs for furniture; its work force is seven people. New companies like these are starting every day.

Kartsotis told me that “creating a few hundred jobs isn’t going to move the needle.” He’s right about that, of course. But, collectively, all these small companies do seem to be helping to bring Detroit back. Young people are moving in to the downtown and midtown areas. The unemployment rate is dropping. Once-abandoned buildings are being reoccupied. There are retail stores and restaurants that didn’t exist even a few years ago. Something very good is happening here, and it’s largely the result of private-sector activity. Kartsotis isn’t the only entrepreneur whose desire to come to the aid of a once-great city has turned out to be a smart business move.

If it seems clear that companies like Shinola are the way forward for Detroit, it is not so clear whether they are also the way forward for American manufacturing more generally. “I’m proud of what this company stands for,” Jacques Panis, Shinola’s president, told me. When I asked him just what that is, he replied: “High-quality manufacturing jobs for America.”

Shinola’s products are well-designed and made. They are selling briskly. But they are not cheap, and they’ll never be mass produced. I’ve written before about how even big manufacturers like Caterpillar and General Electric employ far fewer workers than they used to thanks to automation. Shinola offers a different twist on that idea. It’s not automation that is restricting the number of workers but rather the niche appeal of its products. I’m not sure its example is particularly replicable.

As for Shinola, Kartsotis is readying its next product: Shinola-style headphones that can compete with high-end models like those from Beats. He told me that he has just completed a round of financing and hopes to take the company public one day.

Which will be good for him — and Detroit.


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