Playing my tiny violin. But this stuff is more important than many may realize. To understand why, you have to understand that the foot soldiers of the right come in two main flavors; bullies and apparatchiks. 1/ nytimes.com/2021/01/29/us/…
The bullies want to beat people up — but most will only do it if they don't expect personal consequences. That's probably why the feared wave of violence around the Biden inauguration didn't happen: the 1/6 rioters were shocked to realize they might actually face arrest 2/
The apparatchiks are happy to undermine democracy if it's good for their career. It's a rude shock finding that Trump White House on your resume actually hurts your prospects 3/
What all this says is that all the past accommodations made for these people were deeply destructive. Letting militia members who menaced state houses walk away free set the stage for the storming of the Capitol 4/
Giving Trumpists business gigs and academic visiting appointments encouraged their successors to try overturning an election 5/
I'm not suggesting extraordinary retribution; all we need to do is enforce the law and not reward complicity with malevolence — as opposed to giving right-wingers a free pass the rest of us don't get. You'll be surprised how much that helps 6/
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This crazy GameStop story feels as if someone deliberately set out to illustrate the classic Shleifer-Vishny model of how markets can fail 1/ scholar.harvard.edu/files/shleifer…
S-V argued that the players who keep prices from going crazy tend to be specialists with limited capital — and that when prices go sufficiently crazy, that capital ends up being depleted, making them unable to do their job 2/
So here we have a Reddit mob pushing a stock price to levels that force short-sellers to fold, despite the absence of any reason for such a dramatic rise or to believe the price makes sense 3/
A few thoughts on Janet Yellen as Treasury secretary. Obviously she brings some firsts to the role — the first woman and aside from the brief role of Larry Summers, the first economist as opposed to business type or politician 1/
Obviously a huge change in personal style from her predecessor 2/
Also, perhaps less noticed, a really interesting intellectual background. Her work with George Akerlof helped lay the foundations for behavioral macroeconomics — macro based on observation of how people actually act, not how maximization says they should act 3/
I've noticed a theme in some of my recent hate mail: angry complaints that in saying that almost all elected Republicans are corrupt and/or clueless, I'm engaging in a sin akin to ... racism. So let's talk about that 1/
To state what should be obvious, but apparently isn't, being a Republican isn't like being Black (or Jewish). It's not something you're born into, it's a choice. And in 2021, making that choice requires accepting some key GOP tenets 2/
These include the view that a perfectly normal election was stolen and that extreme measures were justified in an attempt to overturn it; and also the view that moderately progressive policies are a radical socialist agenda 3/
Yes! America offers far less aid to families with children than other advanced countries, yet there's strong evidence that such aid has big long-term benefits 1/ washingtonpost.com/us-policy/2021…
How stingy, how lacking in family values are we? Very 2/
Yet there's compelling evidence that helping children isn't just the decent thing to do, it has long-run benefits to society as a whole 3/ brookings.edu/bpea-articles/…
Still getting anxious mail from people who worry about how America will pay down its debt. Folks, we don't have to pay it down. Here's what happened after WWII: 1/
America never repaid its war debt. It just issued new debt as the old debt came due. But because of inflation and growth, debt as a share of GDP declined steadily, so that by the 60s the war debt was negligible in economic terms 2/
Today, we have an economy where dollar GDP can be expected to grow 3-4% a year, while the feds can borrow at ~1%. This means that debt tends to melt away as a share of GDP unless we run really huge deficits 3/
As Republicans go around claiming that the Biden agenda is job-destroying and whine about deficits, worth remembering that Trump policy was, in effect ... Keynesian. Here's a key picture, explained below 1/
Annual fiscal impulse is the change in CBO's estimate of the cyclically adjusted budget balance; it's a rough measure of stimulus, but good enough to make the point 2/ cbo.gov/publication/56…
Basically, after Rs took the House in 2010, they forced austerity on the Obama administration, delaying recovery. Then they cheerfully presided over both tax cuts and spending increases under Trump 3/