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Chronicle of the Conspiracy Saturday, June 11, 2005 KRUGMAN'S INSANE MIDDLE CLASS NOSTALGIA William Anderson on the Mises Economic Blog reports a conversation with Paul Krugman, in which America's most dangerous liberal pundit called the 70% top marginal tax rate of the pre-Reagan years "insane." Yet, Anderson points out, Krugman rhapsodizes the heyday of the middle class in the 50's and 60's -- and the economic policies that made it possible -- in his latest Times column:
Before the 1970's, the top marginal tax rate was 90%. And Krugman says that even 70% is "insane." Well, he's never been noted for his consistency -- except for his insistence that tax rates should be much higher than they are now. As I pointed out last month, he told the Asia Times that "We should be getting 28% of GDP [gross domestic product] in revenue. We are only collecting 17%." The highest we have ever collected in history is about 21% of GDP. What "insane" top marginal rate would it take to collect 28% of GDP? 95%? 100%? More? Here's another observation about that same paragraph from that same column -- pointed out by Jim Glass on his Scrivener.net blog. Jim is reminded of a similar Krugman paragraph, this one from an article for The Nation in 2003:
Whoa! Talk about "shaping, slicing and selectively citing" data! What happened to the Great Depression? What happened to World War II? Don't they count as part of the explanation, or was it all New Deal policies? Or wait... Glass has a better take on it:
Thanks to reader Chris Masse for the Mises link. Posted by Donald L. Luskin at 9:23 PM |
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Friday, June 10, 2005 KRUGMAN TO ACOLYTES: KEEP BELIEVING Here's how Paul Krugman responds to criticism from his own newspaper's public editor: accuse his enemies of the same things of which he himself is guilty, and do it proudly by throwing the public editor's own words back at him. From Krugman's Times column today:
What's the message here? "The bad guys on the right do it, so I can do it to?" Probably. But more, it's a message to Krugman's "acolytes," as Dan Okrent called them. The message is: "Don't worry. If we all pretend together that Okrent's criticisms didn't sting, then it's as good as if they really didn't. We'll just outlast the bastard." Not exactly the high road. Are you surprised? Posted by Donald L. Luskin at 9:19 AM |
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MERCANTILIST GAME THEORY? in a Wall Street Journal op-ed on Bush administration efforts to bully China into revaluing the yuan: ...if there is short-term pain in this for the U.S., why pressure China to revalue? U.S. policy makers surely understand the downsides of a yuan revaluation for the U.S. economy. And they certainly must realize that their very public campaign only makes it more difficult for the Chinese to take action. Could it be that this is the point? A cynic might hope that the push for a Chinese exchange-rate change is not a response to misguided political pressures, but is instead a devious attempt to prolong the enormous benefits the U.S. derives at China's expense from the fixed dollar-yuan exchange rate. Or perhaps this is accident, not design. Either way, the administration has come up with a brilliant strategy to keep the good times rolling. Posted by Donald L. Luskin at 8:18 AM |
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JUSTICE IS WELL DONE By now surely you've already celebrated the wonderful news that Grand Inquisitor Eliot Spitzer has been soundly rebuked by the jury in the show trial of Theodore C. Sihpol, accused of mutual fund "late trading." Today's lead editorial in the Wall Street Journal gets it all just right. Here are the essentials:
Posted by Donald L. Luskin at 8:04 AM |
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Thursday, June 09, 2005 WILLFUL IGNORANCE Robert Musil points out a stunning bit of deliberate ignorance on the New York Times editorial page.From the editorial "Crumbs for Africa," Tuesday, June 8:
From a Times front-pager the very next day, Wednesday, June 9:
Here's Musil, on the Man Without Qualities blog:
Posted by Donald L. Luskin at 11:17 PM |
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WHAT IS SAID AND WHAT IS UNSAID A reader sends along this gem of selective political/economic analysis from the Associated Press: Economists believe that solid economic growth will continue to support increased hiring this year, a prediction that the Bush administration hopes will come true.Who doesn't hope this prediction will come true? The Democrats? Then why doesn't the AP say that? Posted by Donald L. Luskin at 7:39 PM |
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I GUESS I'M NOT THE ONLY ONE On our letters page -- reader Bruce Kesler on his battles with the "ombudsperson" from the San Diego Union-Tribune. Posted by Donald L. Luskin at 8:58 AM |
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A BRIEF HISTORY OF THE SCHOOL CHOICE MOVEMENT It's always good to read the occasional piece by Milton Friedman in the Wall Street Journal. This morning's is the history of his intellectual and moral involvement in the school choice movement -- how it was his first area of inquiry into the importance of free markets, why it's necessary to save a dying US education system, and how finally some small progress is being made. Posted by Donald L. Luskin at 7:55 AM |
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Wednesday, June 08, 2005 RISK? WHAT RISK! When the media talks about personal accounts, it's always some version of Al Gore's overweening warning about a "risky scheme." Here's a terrific report by the Free Media Project, documenting the media's one-sided finger-waggings and telling the truth about how little risk is involved in personal accounts (and how much risk is involved in the existing system). Yes, I'm quoted generously here -- so call me biased. But this is great stuff.Posted by Donald L. Luskin at 1:47 PM |
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CALAME SPEAKS We've opened up a dialog with Barney Calame, the new "public editor" of the New York Times. I asked him to comment on what approach he'll be taking to op-ed columnists, and the matter of their factual accuracy and the "fairness" of their opinions (not in the sense of their balance, but in the sense of their intellectual integrity). Here's his eminently reasonable response: I consider the question an important one -- but more philosophical and of less immediate urgency than questions about the accuracy and fairness of articles that have just appeared in the paper. Posted by Donald L. Luskin at 12:48 PM |
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WELL, YEAH... The New York Sun reports: "A Brooklyn College professor who described religious people as 'moral retards' said he is dropping his bid to become chairman of the department of sociology after the college's president expressed outrage over his views." Thanks to reader Bruce Kesler for the link. Posted by Donald L. Luskin at 9:21 AM |
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THE 2005 JAYSON AWARDS!!
It was a real challenge to pick the winners -- the best of Krugman’s worst -- because America’s most dangerous liberal pundit has produced an unprecedented wealth of partisan sleaze. And after writing the Krugman Truth Squad column for more than two years, I really thought I’d seen it all. But thanks to the almost two hundred readers who submitted nominations, the 2005 Jaysons recognize a great selection of not only familiar classics, but also some brand-new never-before-seen Krugman howlers. Our first Jayson is given in the category of Shaping, Slicing, and Selectively Citing Numbers -- Krugman’s “disturbing habit” according to former New York Times “public editor” Daniel Okrent. The envelope please. … And the winner is … David M. Kiriazis, chairman of the economics department at Frostburg State University in Frostburg, Maryland, for the terrific example of statistical sinnuendo that he uses in his Principles of Economics class as an example of what not to do. In a March 12, 2004, Times column, Krugman wrote:
But as Prof. Kiriazis explains,
By the way, I specifically corresponded with both Okrent and Times editorial-page editor Gail Collins about this episode, and was “entirely” stonewalled by both. Collins blew me off by sniffing, “I’ve discussed your objections with Paul Krugman and am convinced that everything he wrote was well within the realm of acceptable opinion writing.” Our second Jayson is for the category of Biggest Howler (Political). And the winner is … Jeffrey Gepner, who submitted Krugman’s Times column from election morning last November. Believing -- along with the rest of the media -- that John Kerry would win the presidency, Krugman rhapsodized,
Needless to say, Krugman’s not feeling quite so rhapsodic lately. In a Times column three weeks ago he had this to say about “America’s great gift to the world, in action”:
The runner-up in this category is Jeffrey Trimarchi, who submitted Krugman’s Times column of January 2, 2004. Back then, Krugman was furiously supporting the candidacy of Howard Dean (who had publicly said that, if elected, he would name Krugman as his “foremost economic policy advisor”). Urging John Kerry to get out of the race and make way for Dean, Krugman claimed the Kerry campaign had “imploded,” and clucked,
Our third Jayson is for the category of Biggest Howler (Economics). And the winner is … Max Pappas, who has unearthed an astonishing and hitherto unknown statement by Krugman. In the December/January 1996-97 issue of Boston Review, Krugman -- today a rabid defender of the Social Security status quo and opponent of “privatization” -- not only admits that there is a crisis, he comes out in favor of personal accounts:
By way of contrast, runner-up Chris Braaten submitted a January 2005 interview in Rolling Stone in which Krugman had a very different message for “today’s young.” On personal accounts, Krugman stated,
Our next Jayson is for the category Worst Prediction. And the winner is … Jon Henke of the Questions and Observations blog, who found this hysterically bad prediction in a 1998 Krugman article called, ironically, “Why Predictions Are Wrong.” Krugman wrote,
Here’s a graph showing nonfarm business output-per-hour, direct from the website of the Department of Labor. As you can see, productivity launched into its greatest-ever sustained period of growth right after that “blip.” Better send a fax to Krugman about that (in case he doesn’t have an Internet connection).
The next Jayson is for the category of Funniest Inadvertent Confession. And the winner is … Paul Kane, who resurrected Krugman’s Times column of April 23, 2000, aptly titled “How to Be A Hack.” In a discussion of the economic “hired guns” who “roam in packs” in Washington, he describes how to identify one, writing,
And here’s some advice for the Krugman Truth Squad:
We couldn’t agree more, Paul! The runner-up in this category is Jimmie Bise, Jr., who found this confession in a 1998 Fortune column -- something it’s taken a frustrated Dan Okrent all these years to figure out:
Our final Jayson is the N. Gregory Mankiw Award for Excellence in “Just Making Stuff Up.” And the winner is … Jim Glass of the Scrivener.net blog. Glass submitted Krugman’s Times column of January 28, 2005, in which Krugman utterly invented out of whole cloth the mortality statistics required to prove that African Americans don’t get a bad deal from Social Security. Refuting a statement by President Bush to the effect that shorter life expectancies mean that African Americans don’t collect as much in Social Security benefits as whites, Krugman wrote:
Glass demolished this by going to life-expectancy data from the National Center for Health Statistics. Writes Glass,
Six categories, and regrettably only six Jayson winners. Thanks again to all the readers who submitted terrific nominations. And especially to the bloggers of the Krugman Truth Squad who, as always, came up with so many great ideas. Be sure to visit Just One Minute, Man Without Qualities, Econopundit, Lying in Ponds, Eidelblog, and Tim Worstall for more prime Krugman gotchas. Posted by Donald L. Luskin at 8:59 AM |
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JILL AND WILL
Our uber-reader Jill Olson continues to successfully infiltrate the vast right wing conspiracy, and her rogues gallery of star portraits grows. Here's her latest close encounter: George Will. Jill was previously seen in the company of Ann Coulter. Posted by Donald L. Luskin at 7:57 AM |
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KRUGMAN SETS THE STANDARDS AT THE TIMES ... not the "public editor." Check out Jane Galt this morning for another of the "divide by ten error" at the paper of record. Thanks to reader Sylvain Galineau for the link. Posted by Donald L. Luskin at 7:25 AM |
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Tuesday, June 07, 2005 GLOBAL WELFARE QUEENS Leftist welfare impulses on a grand global scale: the forgiveness of underdeveloped countries' debt (when they've stopped paying the interest years ago anyway), and the extension of further "debt" (under the circumstances, merely a gift). The Wall Street Journal wisely disagrees:Some 38 nations qualify as "highly indebted poor countries," or HIPCs. Despite $144 billion in bad loans, mostly from official lenders, their average per-capita income is more than 25% below where it was in 1980. Ending this misery starts with diagnosing the problem. And to that end, the British claim that "many countries have to choose between servicing their debt and investing in health, education, infrastructure and other areas" isn't helpful -- because it isn't true. Posted by Donald L. Luskin at 9:58 AM |
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Monday, June 06, 2005 MANNE ON DONALDSON The always reliable Henry Manne has a knockout op-ed in the Wall Street Journal this morning, celebrating the potential for deregulatory reform in the departure of William Donaldson from the SEC, and his replacement by Chris Cox.I have reference first and foremost to Sarbanes-Oxley and, second, to the efforts by Mr. Donaldson, largely unnoticed outside Wall Street, to protect the age-old privileged position of the New York Stock Exchange against competition and to register hedge funds. Posted by Donald L. Luskin at 8:50 AM |
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Sunday, June 05, 2005 AN UNEXPECTED MOMENT OF CLEAR-HEADEDNESS here in the Golden State. Our Senator Diane Feinstein comes out against the Schumer/Graham China tariff amendment. Brava!Posted by Donald L. Luskin at 6:31 PM |
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DOUBLE HEADER A year ago the New York Times found a way to both bash Bush and build up Democrats at the same time, by salting yet another cultural review with yet another political irrelevancy. The lead paragraph from a review in the New York Times Sunday Book Review -- Douglas McGrath on Grant and Twain, The Story of a Friendship That Changed America, by Mark Perry: When people speak of the "weight of history," I am not moved. The McGrath head has never been bowed with worry as President Kennedy's must have been during the Cuban missile crisis or as President George W. Bush's surely was when gas prices briefly dipped below $2 a gallon, weakening key stocks in his trust fund.Via Discriminations, thanks to reader Fred Manzo. Posted by Donald L. Luskin at 4:29 PM |
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