November 26, 2012
Paul Krugman was right – says former Bush official Bruce Bartlett
Everybody I know on or associated with Wall Street absolutely loathes Paul Krugman. Although their accusations usually revolve around just calling him a socialist. That is despite the fact that almost everything he’s written about turned out to be true. Rates are low and were low for years, stimulus worked although it would’ve worked better if it was bigger, etc.
I was waiting for the day when Paul Krugman will be able to say to his detractors “I told you so”, but perhaps he’s too polite. So other people do it for him. Here’s a nice summary from Andrew Sullivan. I would especially focus on the quote from Bruce Bartlett, former George W. Bush’s policy analyst:
Annoyingly, I found myself joined at the hip to Paul Krugman, whose analysis was identical to my own. I had previously viewed Krugman as an intellectual enemy and attacked him rather colorfully in an old column that he still remembers. For the record, no one has been more correct in his analysis and prescriptions for the economy’s problems than Paul Krugman. The blind hatred for him on the right simply pushed me further away from my old allies and comrades… The economy continues to conform to textbook Keynesianism. We still need more aggregate demand, and the Republican idea that tax cuts for the rich will save us becomes more ridiculous by the day.