My GMU Econ colleague Garett Jones reviews, in Barron’s, Paul Krugman’s new book. Here’s a slice from Garett’s superb review:
This is the Krugman who blames Reagan-era deregulation for creating a generation of Lotto Bankers, even though the Lotto Bankers got in trouble for holding mortgages, a completely conventional bank investment. Does anyone think that if we had kept the old rules, banks would have been forever banned from holding mortgage-backed securities, especially when those “government-sponsored enterprises,” Fannie Mae and Freddie Mac, were dispensing them by the ton-load?
This is also the Krugman who tells us that government spending expands the economy, but fails to tell his readers that the Congressional Budget Office—which he praises elsewhere—recently concluded that government spending might expand the overall economy only by shrinking the private sector. Some of those new police officers used to be security guards, some of those firefighters used to be paramedics.
James Pethokoukis is not at all impressed with yesterday’s jobs report for August. Pethokoukis’s AEI colleague Mark Perry has a different angle.
Sausages and legislation, eah? My friend Gerry Nicholls explains.