News for Mr. Krugman. The other day DW, the German broadcast of world news in English, ran a story about the problem the German government was having in dealing with the issue that unemployment entitlements and those of the non working have reached within 300 Euros a month of the average wage of people who are working. Given that workers have expenses that non workers do not have like transportation the gap is even narrower.
Mr. Krugman should be forced to address the question of how we break the welfare poverty cycle.
Former Enron adviser Paul Krugman takes note in his New York Times column of what he calls "the incredible gap that has opened up between the parties":
Today, Democrats and Republicans live in different universes, both intellectually and morally.
"What Democrats believe," he says "is what textbook economics says":
But that's not how Republicans see it. Here's what Senator Jon Kyl of Arizona, the second-ranking Republican in the Senate, had to say when defending Mr. Bunning's position (although not joining his blockade): unemployment relief "doesn't create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work."
Krugman scoffs: "To me, that's a bizarre point of view--but then, I don't live in Mr. Kyl's universe."
What does textbook economics have to say about this question? Here is a passage from a textbook called "Macroeconomics":
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.
So it turns out that what Krugman calls Sen. Kyl's "bizarre point of view" is, in fact, textbook economics. The authors of that textbook are Paul Krugman and Robin Wells. Miss Wells is also known as Mrs. Paul Krugman.
Podcast
James Taranto on Paul Krugman's universes.
It seems Krugman himself lives in two different universes--the universe of the academic economist and the universe of the bitter partisan columnist. Or maybe this is like that episode of "Star Trek" in which crewmen from the Enterprise switched places with their counterparts from a universe in which everyone was the same, only evil.
Like Spock, the evil Krugman is the one with the beard.
Questions Former Enron Adviser Paul Krugman May Be Asking "Is That Saturn's Moon Titan or Utah?"--headline, Jet Propulsion Laboratory press release, March 4
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