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Home / Tag Archives: Economic Crisis and Recovery

Tag Archives: Economic Crisis and Recovery

The Krugman Boom: Don’t Bank on It

I have largely been in agreement with Paul Krugman in his assessment of the economy over the last dozen years or so, but I think in his latest column he let the promise of a post-Trump era get the better of him. Krugman notes that the distribution of effective vaccines should allow people to return to their normal lives. He argues that this will lead to a spending boom, as consumers have accumulated savings through the slump and will now be in a position to spend lots of money. As a model he...

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Donald Trump and Being Deplorable

As it increasingly looks like Joe Biden has won the election, I see many people around me appalled that so many of their fellow citizens can vote for someone as racist, sexist, and otherwise offensive as Donald Trump. Given what we know about the guy, and think everyone else should know about him as well, it is hard not to be appalled. But we will not get anywhere politically by looking at half the country with disgust. Trying to win over some of Trump’s voters doesn’t mean giving in to...

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The NYT Prints Usual Nonsense About Bubbles

The NYT has apparently assigned Ruchir Sharma the task of writing periodic pieces about the prospect of a crashing bubble giving us another horrible recession. These pieces always show a failure to understand the most basic features of the Great Recession. This fits with the need of elite-types to pretend that the risks of the housing bubble were hard to see, as opposed to requiring a passing glance at quarterly GDP data. Sharma’s latest tells us that we should be worried because house...

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Changes that Would Make a Difference in the Biden Administration

I’m not going to get too into mapping out an agenda for the Biden administration. I still remember speaking at the zombie conferences (stealing that line from my friend, Josh Bivens) in November and December of 2016. We had all sorts of great plans for the Clinton administration. But there are still some points that can be usefully made even if Biden doesn’t win. (Okay, I realize the world will look pretty scary if Trump gets four more years and can let loose the fury of hell on anyone who...

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The Rise in Material Hardship Among Working-Class Whites and How It Could Impact the 2020 Election

Missed or late rent or mortgage payments with little confidence of being able to catch-up are hallmarks of what economists call “housing insecurity.” Black and Hispanic people are much more likely to be housing insecure than white people and have seen larger increases in housing insecurity during the pandemic. At the same time, there is considerable “hardship inequality” among white people. Hardship inequality is structured by education, income, and other factors. While housing insecurity has...

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Red State Governors Still Flunk Coronavirus Testing

A few weeks back I did a post noting that states governed by Republicans had the highest positive test rates, while the states with the lowest positive rates were mostly governed by Democrats. I argued that positive test rates are a good measure of how serious the governors are in trying to bring the pandemic under control. While they can take measures to limit the actual spread, such as longer and stronger lockdowns and mask requirements, many factors determining the spread are outside their...

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The Impact of the Pandemic on Superstar Cities

The Washington Post had a piece last week discussing the extent to which the pandemic, and more specifically increased opportunities for remote work, will affect thriving cities like New York and San Francisco. The main conclusion of the piece is that it won’t have much impact. This view is a bit peculiar. The argument in the article is essentially that these cities are very attractive places to live, and that will continue to be the case even if people have more opportunities to work...

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Waiting for a Vaccine and the Collaborative Research Alternative

It seems increasingly likely that China will begin providing vaccines to its own people, as well as those in some other countries, by December, and possibly as early as next month. The prospect of a vaccine being available that soon has to look good to people here, now that the Trump administration’s pandemic control efforts have completely failed. The whole country would like to get back to normal, but that doesn’t seem like a serious possibility until we have an effective...

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Trump’s Triple Failure: Virus Control, Stimulus, and the Trade Deficit

See article on original site Given the precarious state of the economy, President Trump’s reckless decision to walk away from stimulus negotiations last week was a consequential act of political malpractice. He has since flipped and flopped on this by the hour, but his actions have been particularly rash given his administration’s failure to even try to control the virus. First they ignored the health outcomes. Now they’re playing erratic politics with the resulting economic pain. But working...

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The Washington Post Has Never Heard of the International Monetary Fund

That would seem to be the case from reading the paper’s editorial on the need to take steps to reduce extreme poverty in developing countries. The editorial never once mentions the proposal before the International Monetary Fund to substantially increase the special drawing rights available to developing countries. This measure, which has the support of the I.M.F. leadership, and most of its member states (but not the Trump administration), would give the developing countries resources...

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