So what are the effects of increasing minimum wages? Any Econ 101 student can tell you the answer: The higher wage reduces the quantity of labor demanded, and hence leads to unemployment. Paul Krugman More Quotes by Paul Krugman More Quotes From Paul Krugman I'm not sure that the current value of the NASDAQ is justified, but I'm not sure that it isn't. Paul Krugman currents justified not-sure But Wall Street people are in fact very smart; they're funny, they're not company men who work their way up the chain. Paul Krugman wall smart men Democracy or breakdown in Syria would change the whole Middle East overnight. Paul Krugman middle-east democracy spring Obama is very much an establishment sort of guy. The whole image of him as a transcendent figure was based on style rather than substance. If you actually looked at what he said, not how he said it, he said very establishment things. He's a moderate, cautious, ameliorative guy. He tends to gravitate toward Beltway conventional wisdom. Paul Krugman style guy substance I admit it: I had fun watching right-wingers go wild as health reform finally became law. Paul Krugman reform law fun I don't think I've had any great success in predicting politics or social change, nor have I really tried. Paul Krugman great-success social thinking Asset bubbles have happened even without not-so-easy money. And, in a depressed economy, where alternative uses of money are not great, people are going to bid up the prices of profitable corporations and stuff like that. Paul Krugman alternatives use people The world economy is in a nosedive, and understanding what I call "depression economics" - the weird world you get into when even a zero interest rate isn't low enough, and a messed-up financial system is dragging down the real economy - is essential if we're going to avoid the worst. Paul Krugman zero understanding real Anyone who thinks that the last 80 years, ever since FDR took us off gold, have been a doomed venture, that strikes me as kind of cranky. Paul Krugman gold years thinking I think Stockman is an interesting sort of amalgam. Paul Krugman interesting thinking I think if you're a liberal, you believe that we all are, at least to some extent, our brothers' keepers, you really believe that we have a sumptuary responsibility to make sure that life is decent for everybody in America, that you believe that society out to be broadly shared, and you believe that you can't have a real democracy unless you have a little bit, at least, of economic democracy. Paul Krugman real brother believe I really think that people have to think safety; taking risks for higher yield is a bad idea once you're in late or latish middle age. Paul Krugman yield ideas thinking I'm especially baffled by the idea of taking insurance against a U.S. default. If America defaults, we're talking about a chaotic world - Mad Max, more or less - in which case, who imagines that insurance claims will be honored? Paul Krugman talking america ideas When the Fed decides that inflation is too high, they have the tools, and they've shown historically that they have the will, to bring it down. And, it might be painful. Paul Krugman down-and tools might Tax cuts were not going to be effective at creating jobs, and the job creation record is lousy. Paul Krugman creating cutting jobs It's a funny thing, by the way, how people who love free markets are also quite sure that they know that investors are being irrational. Paul Krugman funny-things people way I'm in the peculiar position of thinking the Fed should not raise rates, but it should not listen to the President, which is a hard position, there's a pretty good case for not raising rates now. But to not raise rates in this meeting would look like they're allowing themselves to be bullied. Paul Krugman top-news They thought they could simply demand better terms without having any backup plan, so, certainly this is a shock. Paul Krugman world
