Paul Krugman writes about the harmful effects of “libertarianism gone bad, a misunderstanding of what freedom is all about” that have been made plain by the Covid-19 pandemic.
But you also see a lot of libertarian rhetoric — a lot of talk about “freedom” and “personal responsibility.” Even politicians willing to say that people should cover their faces and avoid indoor gatherings refuse to use their power to impose rules to that effect, insisting that it should be a matter of individual choice.
Which is nonsense.
Many things should be matters of individual choice. The government has no business dictating your cultural tastes, your faith or what you decide to do with other consenting adults.
But refusing to wear a face covering during a pandemic, or insisting on mingling indoors with large groups, isn’t like following the church of your choice. It’s more like dumping raw sewage into a reservoir that supplies other people’s drinking water.
The New Yorker has a nice profile of Paul Krugman in this week’s magazine. His political awakening has a somewhat born-again Christian vibe to it.
In his columns, Krugman is belligerently, obsessively political, but this aspect of his personality is actually a recent development. His parents were New Deal liberals, but they weren’t especially interested in politics. In his academic work, Krugman focussed mostly on subjects with little political salience. During the eighties, he thought that supply-side economics was stupid, but he didn’t think that much about it. Unlike Wells, who was so upset when Reagan was elected that she moved to England, Krugman found Reagan comical rather than evil. “I had very little sense of what was at stake in the tax issues,” he says. “I was into career-building at that point and not that concerned.” He worked for Reagan on the staff of the Council of Economic Advisers for a year, but even that didn’t get him thinking about politics. “I feel now like I was sleepwalking through the twenty years before 2000,” he says. “I knew that there was a right-left division, I had a pretty good sense that people like Dick Armey were not good to have rational discussion with, but I didn’t really have a sense of how deep the divide went.”
Paul Krugman writes in How Did Economists Get it So Wrong? (where the “it” is the 2008 recession):
As I see it, the economics profession went astray because economists, as a group, mistook beauty, clad in impressive-looking mathematics, for truth. Until the Great Depression, most economists clung to a vision of capitalism as a perfect or nearly perfect system. That vision wasn’t sustainable in the face of mass unemployment, but as memories of the Depression faded, economists fell back in love with the old, idealized vision of an economy in which rational individuals interact in perfect markets, this time gussied up with fancy equations. The renewed romance with the idealized market was, to be sure, partly a response to shifting political winds, partly a response to financial incentives. But while sabbaticals at the Hoover Institution and job opportunities on Wall Street are nothing to sneeze at, the central cause of the profession’s failure was the desire for an all-encompassing, intellectually elegant approach that also gave economists a chance to show off their mathematical prowess.
Unfortunately, this romanticized and sanitized vision of the economy led most economists to ignore all the things that can go wrong. They turned a blind eye to the limitations of human rationality that often lead to bubbles and busts; to the problems of institutions that run amok; to the imperfections of markets - especially financial markets - that can cause the economy’s operating system to undergo sudden, unpredictable crashes; and to the dangers created when regulators don’t believe in regulation.
He goes on to describe the history of macroeconomics (in brief) and how the current theories are flawed. Very interesting long read.
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