March 8, 2010

Debunking Krugman, With Quotes From Krugman

This is rich.  Flawed economist, Obama cheerleader and socialist Paul Krugman last week had an article in the New York Times about how Democrats and Republicans view the unemployment situation differently both intellectually and morally.  His take is that the Republican view is dire, anti-human and evil.  His reasoning is that 'textbook economics' proves they are both intellectually and morally wrong.  On the opposite side of the ledger:  Paul Krugman's OWN TEXTBOOK.

Hat tip to Carpe Diem for the story (via James Taranto in the Wall Street Journal via Don Boudreaux).

Here's the relevant excerpt from the NYT piece and then from his textbook.  

The Op ed:
What Democrats believe is what textbook economics says: that when the economy is deeply depressed, extending unemployment benefits not only helps those in need, it also reduces unemployment.
The Krugman textbook:

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.
He also says in the Op-Ed piece that Republicans live in a  different universe from him - Yeah, it's called reality.

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