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November 7, 2014

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Paul Krugman: Triumph of the Wrong

Posted: 07 Nov 2014 12:24 AM PST

Why did Republicans do so well in the election?:

Triumph of the Wrong, by Paul Krugman, Commentary, NY Times: The race is not to the swift, nor the battle to the strong..., nor yet midterms to men of understanding. Or as I put it on the eve of another Republican Party sweep, politics determines who has the power, not who has the truth. Still, it's not often that a party that is so wrong about so much does as well as Republicans...., the new rulers of Congress have been about, well, everything.
First, there's economic policy. According to conservative dogma, which denounces any regulation of the sacred pursuit of profit, the financial crisis of 2008 ... shouldn't have been possible. But Republicans ... invented an imaginary history in which the government was somehow responsible...
In 2009, when an ailing economy desperately needed aid, John Boehner ... declared: "It's time for government to tighten their belts."
So here we are, with years of experience..., and the lessons ... couldn't be clearer. Predictions that deficit spending would lead to soaring interest rates, that easy money would lead to runaway inflation and debase the dollar, have been wrong again and again. ...
Then there's health reform, where Republicans were very clear about what was supposed to happen: minimal enrollments, more people losing insurance than gaining it, soaring costs. Reality, so far, has begged to differ...
And we shouldn't forget the most important wrongness of all, on climate change. ... Now these people will be in a position to block action for years to come, quite possibly pushing us past the point of no return.
 But if Republicans have been so completely wrong..., why did voters give them such a big victory?
Part of the answer is that leading Republicans managed to mask their true positions. Perhaps most notably, Senator Mitch McConnell, the incoming majority leader, managed to convey the completely false impression that Kentucky could retain its impressive gains in health coverage even if Obamacare were repealed.
But the biggest secret of the Republican triumph surely lies in the discovery that obstructionism bordering on sabotage is a winning political strategy. ...
This was ... bad for America but good for Republicans. Most voters don't know much about policy details, nor do they understand the legislative process. So all they saw was that the man in the White House wasn't delivering prosperity — and they punished his party.
Will things change now that the G.O.P. can't so easily evade responsibility? I guess we'll find out.

Links for 11-07-14

Posted: 07 Nov 2014 12:06 AM PST

Roll Your Own

Posted: 06 Nov 2014 10:25 AM PST

It's a travel day, and I don't have time for any more posts until later (hopefully). So I'll turn it over to you in comments to fill in the gap. Thanks.

'Understanding and Overcoming America's Plutocracy'

Posted: 06 Nov 2014 07:54 AM PST

Jeff Sachs:

Understanding and Overcoming America's Plutocracy: Pity the American people for imagining that they have just elected the new Congress. In a formal way, they of course have. The public did vote. But in a substantive way, it's not true that they have chosen their government.
This was the billionaires' election, billionaires of both parties. And while the Republican and Democratic Party billionaires have some differences, what unites them is much stronger than what divides them, a few exceptions aside. Indeed, many of the richest individual and corporate donors give to both parties. The much-discussed left-right polarization is not polarization at all. The political system is actually relatively united and working very effectively for the richest of the rich. ...

'Blog You Need to Read: Tim Duy's Fed Watch'

Posted: 06 Nov 2014 07:54 AM PST

I can't claim to be unbiased, but fully agree with Brad DeLong:

Blog You Need to Read: Tim Duy's Fed Watch: Over at Equitable Growth As all of you surely know by now, I am a big fan of Tim Duy of the University of Oregon and his Fed Watch.

Here is a sample--ten very useful and informative takes from the past half-year or so:

Always judicious, always giving a fair shake to all the currents of thought in the Federal Reserve, to the data, and to the live and serious models of how the economy works.

Read Tim Duy, and you have a sophisticated, broad, and truly balanced understanding of what the Federal Reserve is thinking, what it is doing, why it is doing it, and what the likely outcomes of its actions are. That is a package that is very hard to find anyplace else.

It still surprises me that Tim Duy does not get significantly more airplay in the general conversational mix than he does...

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