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Paul Krugman
Nobel laureate. Op-Ed columnist, . Author, “The Return of Depression Economics,” “The Great Unraveling,” "Arguing With Zombies," + more.
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Paul Krugman 13h
Replying to @paulkrugman
Illustrated here 2/
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Paul Krugman 13h
It's in the Book of Armaments, Chapter two, verses nine through twenty-one 1/
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Paul Krugman 19h
Replying to @paulkrugman
America's uniquely disastrous coronavirus response was about politics — a vicious incompetent in the White House and a ruling party that can't and won't do actual policy. With decent leadership Americans could have risen to the occasion 6/
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Paul Krugman 19h
Replying to @paulkrugman
Of course there's a great deal of hardship; many businesses have already gone under, and the end of unemployment supplements will mean disaster for many. But don't say that America was incapable of dealing with this; last I heard, NYC was part of America 5/
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Paul Krugman 19h
Replying to @paulkrugman
And life is going on. Stores are open; no indoor dining but many restaurants have expanded outdoor seating into former parking lanes (Manhattan looking pretty Parisian these days). Lots of people out — almost all wearing masks 4/
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Paul Krugman 19h
Replying to @paulkrugman
Not, in the end, all that different from, say, Belgium, even adjusting for somewhat smaller population 3/
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Paul Krugman 19h
Replying to @paulkrugman
Deaths were very high in the beginning, partly because we didn't know how to contain Covid-19, partly because of big policy errors. But now deaths are in the low single digits 2/
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Paul Krugman 19h
I'm not sure how many people realize that New York, after a terrible start, now looks like European nations that have managed to resume a lot of normal life despite the pandemic 1/
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Paul Krugman 20h
I honestly don't know whether to be terrified or to remember that these were the people whose "cubic model" said the pandemic would end in April
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Paul Krugman retweeted
Arthur Delaney 23h
Trump didn’t extend unemployment benefits yesterday. He told states to set up a “lost wages assistance program” in coordination with FEMA, DHS and DOL and it’s gonna be a dang mess
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Paul Krugman 21h
Replying to @paulkrugman
So this is just about the worst policy idea I've seen since, um, telling people they don't need to wear masks 6/
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Paul Krugman 21h
Replying to @paulkrugman
So no reason to believe employers will create jobs; they can't. Nor will they raise wages. Why should they, when workers begging for jobs? They'll just pocket the tax cut. This is just a giveaway to business — and specifically to businesses hurt least by Covid-19 5/
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Paul Krugman 22h
Replying to @paulkrugman
But none of this relevant now. Employers not on their normal demand curve, bc they are shut by pandemic. Worker supply highly elastic, because huge number of unemployed seeking scarce jobs 4/
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Paul Krugman 22h
Replying to @paulkrugman
Here's the Econ101 logic. Demand for workers depends on cost, which includes wage plus payroll contribution. Supply is inelastic: # of workers not thought to depend much on wage. So tax cut shifts D up, leading to wage rise 3/
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Paul Krugman 22h
Replying to @paulkrugman
Econ 101 says that in the long run, under normal conditions, payroll tax cuts r passed on to workers in higher wages. Some qs about that proposition, but put that aside. The key point is that we need short-run relief under abnormal conditions — and tax cut won't provide it 2/
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Paul Krugman 22h
As I said, payroll tax cuts are the hydroxychloroquine of economic policy. But let me nerd out a bit on exactly why they're so useless right now 1/
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Paul Krugman 22h
Very good summary of why Trump's quack medicine for the economy won't do anything positive
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Paul Krugman 22h
Replying to @paulkrugman
So this is policy by reality TV: an attempt to pretend that Trump is doing something, while providing no real relief for months at best. The fact is that Trump and those around him don't know how to do policy 9/
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Paul Krugman 22h
Replying to @paulkrugman
States are also broke because of coronavirus revenue losses and expenses. Even if they could reprogram their COBOL-driven computers fast enough, they wouldn't have the money 8/
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Paul Krugman 22h
Replying to @paulkrugman
Two realities here: 1. The administrative capacity of state unemployment offices is stretched to the limit — it took months to provide expanded benefits, and some people never got them. They're in no position to add a new program 7/
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