Paul Krugman makes it big time

We’ve been talking about Paul Krugman, because he is on the spot in this economic crisis, as the public face of the Keynesian wing of the economics profession. He won the Nobel Prize in economics in 2008 and now he is going to be on Newsweek’s cover for being an Obama critic.(1)

He’s referred to as a “liberal” critic of the Obama administration or “loyal opposition.” Along with a few other people, he shapes what Treasury Secretary Geithner says to the public.

As we reported before, we are surprised to find Krugman outside the Obama administration at all.(1) Obama seems to scoop up anyone who could be a potential critic or ally, whether Volcker or Clinton for example.

An exception creating more space to the left of the Obama administration is Joseph Stiglitz.

The diversification of the economics profession protects it from being swept away with one capitalist failure. However, Krugman himself says out loud that there may not be political wherewithal to try what he wants done once capitalist failure gets beyond a certain point. Hence, someone may offer a theoretical difference and the terrain may change before it gets a try-out.

We find it likely that Krugman is in the Obama administration bullpen. The public will want to try many options, and it has those options without turning to socialism. We won’t get a clean sweep of the economics profession in one year.



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