The consistency of an ex-Enron advisor
Old Paul Krugman: “The causes of this increase in equality [from 1979 to 2003] are a subject of some controversy, but probably the most important cause is rapid technological change, which has increased the demand for highly skilled or talented workers more rapidly than the demand for other workers.”
New Paul Krugman: “There's a persistent myth, perpetuated by economists who should know better -- like Edward Lazear, the chairman of the president's Council of Economic Advisers -- that rising inequality in the United States is mainly a matter of a rising gap between those with a lot of education and those without.”
Hat tip to Greg Mankiw.
2 comments:
Oh, that changeable Krugman! He probably once wrote that falling gas prices would help sink the Democrats' hopes in November 2006! Haw, what a sap!
If you've read Krugman over the last five or six years, you'll find that his thinking has evolved in various ways. Thing is, a lot of economists have been moving in the same direction. And it would be surprising if a Republican administration determined to increase wealth and income disparity didn't have success.
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