The Agony and the IdiocyPosted: February 16, 2013
Some one needs to take the shovel away from Joe Scarborough. He’s about ready to wind up in Siberia with that hole he’s digging himself. I’ve never seen such obsessive compulsive self-destructive behavior. The man cannot admit he’s wrong and knows nothing about economics. He also doesn’t appear to know the difference between an economist and a lawyer and a foreign policy expert. I expect that one of these days he’ll have heart failure then go to his Politico blog to instruct another lawyer on how to do his surgery correctly. Maybe, he’ll start giving lectures on the origins of the universe to Neil Degrasse Tyson next.
Who knew one man could become apoplectic convincing every one he wasn’t beaten up in a one-sided match of wits by Nobel Prize Winning Economist and ubernerd Paul Krugman over 2 weeks ago? He’s written the second of two “I know you are, but what am I?” blog threads at Politico in two days. What Scarboroughs’s become is your run-of-the-mill internet troll who is now blog stalking Dr. Krugman. Only “Tiger Beat on the Potomac” would continue to give this pathetic man a platform for what looks like a developing psychological disorder. We thought he’d over done it on Nate Silver and the presidential poll analysis. But, nope, he’s back and convinced he knows enough about investment and econometrics to analyze the whims of investors.
Yesterday’s Scarborough rant was so bad and so wrong, I actually stepped into it. Scarborough relentlessly insists that Krugman is wrong and that all the rest of us economists think he’s wrong too. To prove his point and to try to get back for being shown up on his show, Mourning Joe used an article written by Princeton economist and Paul Krugman colleague Alan Blinder. The only problem is that Blinder is basically saying the same thing Krugman’s been saying all along. Scarborough not only proved Krugman’s point, he totally missed the point–and the headline–of the Blinder article as well as ascribing the article to the wrong publication. Mourning Joe must’ve read only a sentence and ignored the rest. Does that first sentence not read “Today, there is no deficit crisis” or do I need to up my script for my reading glasses?
Today, there is no deficit crisis. Tomorrow, there will be no deficit crisis. But in ten years, we will have a massive problem of exploding health care costs. Now that’s a crisis to worry about.
But the same could not be said of a fabulously misleading Business Insider post that claimed to list 11 economists who shared Krugman’s debt-denying views. Never mind the fact that most of the links provided actually undercut Krugman’s reckless position and supported my view that the most pressing fiscal crisis is not next year’s deficit but next decade’s debt.
The Business Insider link to an Alan Blinder piece was particularly supportive of the “Morning Joe” panel’s view. Blinder, a former Fed vice chairman and Princeton economics professor, warned of “truly horrific problems” caused by long-term debt, health care costs and interest on the debt. Paul Krugman’s Princeton colleague even shared my conclusion that the coming Medicare crisis will be so great that Democrats won’t be able to tax their way out of it.
Far from supporting Mr. Krugman’s extreme position, the link to Professor Blinder’s New Yorker article undercuts his Princeton colleague’s exaggerated “In-the-end-we’ll-all-be-dead” approach to U.S. long-term debt.
Then he added a short list of noneconomists--including Ed Rendell who is paid lobbyist for deficit hawk group Fix the Debt associated with Simpson & EB who make about $40,000 a speech as travelling austerians–as proof that all economists think Krugman is as extreme on economics as Wayne LaPierre is on gun safety laws. Considering Krugman’s name resides on a well-known trade model, he’s published in just about every prestigious peer-reviewed journal possible, and he’s got one of the best-selling set of text books in the country right now, I’d say Joe just won’t admit he’s way out of his league. Krugman calls Scarborough desperate. Frankly, he gone way beyond that to pathetic to me.
First up, the sad story of Joe Scarborough, whose response to my anti-austerian appearance on his show has been a bizarre campaign to convince the world that absolutely nobody of consequence shares my views. Why is this bizarre? Because while I could be wrong about macroeconomics (although I’m not), it’s just not true, provably not true, that I’m alone in arguing that the current and near-future deficit aren’t problems.
I actually wrote about all of this over two weeks ago (1/30/2013) when the incident first happened, so it seems all deja vu to be at this again. But let me tie this to a bigger problem again. Hillary Clinton left the Benghazi hearings uttering something profound. These hearings were some of the more bizarre things I’d ever watched until the Hagel hearings started and the obsession with conspiracy theories went nuclear. Clinton said some ‘‘just will not live in an evidence-based world’. This includes Joe Scarborough who thinks his “analysis” in his latest little short blog blurb shows Krugman as being wrong, wrong wrong. This is what he thinks is a “TA DA”! moment. I would expect better analysis from Macro 101 students. I would also expect any student in basic statistics or econometrics to have a hey day with his methodology which doesn’t even broach the high school level. But, he’s real proud of it and thinks it puts Krugman in his place.
Investors may be growing skittish about U.S. government debt levels and the disordered state of U.S. fiscal policymaking.
From the beginning of 2002, when U.S. government debt was at its most recent minimum as a share of GDP, to the end of 2012, the dollar lost 25 percent of its value, in price-adjusted terms, against a basket of the currencies of major trading partners. This may have been because investors fear that the only way out of the current debt problems will be future inflation.
More troubling for the future is that private domestic investment—the fuel for future economic growth—shows a strong negative correlation with government debt levels over several business cycles dating back to the late 1950s. Continuing high debt does not bode well in this regard.
I can tell you that the minute all the econ and finance professors who blog get a hold of this, there will be laughter so loud that it will leave the blogosphere and escape to a permanent home in the universal annals of Pathos. Frankly, I can already see using this in a first level, midterm statistics class, corporate finance class or economics class. How many wrong things can you point to in this analysis in just 45 minutes? Go!
Joe probably eyeballed domestic investment numbers and debt levels then labelled it correlation so he can jump an infinite number of sharks to go AHA!!!! GOTCHA PROFESSOR MORIARTY errr Krugman!! He also appears to be blissfully unaware of Fed policy concerning the dollar which basically sets the supply of our currency and the fact that supply interacts with the demand for our currency to set exchange rates. Oh, and the dollar’s been up against the major currencies (especially the EURO) since Dubya left office, so one of his arguments is just factually wrong. The USD has been up against the Yen for well over a year and then up then flat against the Pound Sterling for years so I’m not sure which currency he’s worried about in that basket. It’s even been flat against the Cayman Islands Dollar which I’m sure is more of interest to him than anything else. It’s way down against the Chinese Yuan but then, I wouldn’t consider that a problem at all.
I’m tempted to go there and there and all the places I could go with this, but I won’t because most of you probably don’t want a stats lecture and I don’t have all day. Let me just say that there are a lot of factors that drive investment, which is the least logical component of the national income accounts; and to single out one possible factor without controlling for any of the other factors is a fool’s errand. It shows complete ignorance of investment, finance, and economics so we can add a few more things to the list called what Joe doesn’t know. Actually, worse than that is that he appears to have gotten this blather from an anonymous “senior economist” from the Rand Corporation. Is he misquoting another economist or did some one actually write this for him? Worrying either way!!
Joe, however, is more importantly a symptom of the much bigger problem identified by our former Madam Secretary. We have an entire political party that insists it’s right when clearly, the overwhelming amount of evidence says its wrong. For this analysis, I’m closing with something by Kevin Drum who occasionally can find the nut. We deserve a better press. We deserve better than Joe Scarborough littering up the air waves under the guise of “news” instead of misguided memes and propaganda.
It seems to me that something has happened over the past three months: the nonpartisan media has finally started to internalize the idea that the modern Republican Party has gone off the rails. Their leaders can’t control their backbenchers. They throw pointless temper tantrums about everything President Obama proposes. They have no serious ideas of their own aside from wanting to keep taxes low on the rich. They’re serially obsessed with a few hobby horses — Fast & Furious! Obamacare! Benghazi! — that no one else cares about. Their fundraising is controlled by scam artists. They’re rudderless and consumed with infighting. They’re demographically doomed.
Obviously these are all things that we partisan hacks in the blogosphere have been yapping about forever. But the mainstream press, despite endless conservative kvetching to the contrary, has mostly stuck with standard shape-of-the-world-differs reporting.
Recently, though, my sense is that this has shifted a bit. The framing of even straight new [sic] reports feels just a little bit jaded, as if veteran reporters just can’t bring themselves to pretend one more time that climate change is a hoax, Benghazi is a scandal, and federal spending is spiraling out of control. It’s getting harder and harder to pretend that the same old shrieking over the same old issues is really newsworthy.
This brings me back to Boston Boomer’s Valentine’s Day morning rant based on a phone discussion we had the night before. Why-oh-Why am I writing about this again? Why-oh-why can’t we put this kind of nonsense to bed like all sane people who know the earth is not flat, an apple will fall to the ground if dropped from a tree, and if you every one stops spending and only a few families have decent incomes, the economy will contract and say stay contracted? Don’t folks like Scarborough and the AEI know we buried Say’s
Law Failed Hypothesis a long time ago? (Kinda like we buried that zombie Laffer curve! But some folks just want to believe the universe revolves around the earth and the entire set up is only a few thousand years old. Hmmm, like Mark Rubio.)
I’m not sure that last question was rhetorical or not, but hey, it’s a thread and there’s a discussion, so discuss amongst yourselves …
Here’s the topic:
Joe Scarborough, pathetic or desperate? or Why oh Why can’t we Have a better press corps? Joe Scarborough edition