Home > Cande = Conjecture & Exaggeration, Fande = Fact & Evidence, The Economy > Paul Krugman bringing the Fande on presidential candidate, Texas Governor Rick Perry

Paul Krugman bringing the Fande on presidential candidate, Texas Governor Rick Perry

source: http://www.nytimes.com/2011/08/15/opinion/the-texas-unmiracle.html?src=ISMR_HP_LO_MST_FB

WARNING: Mr. Krugman’s words are hot to the touch…

EXCERPT:

“What Texas shows is that a state offering cheap labor and, less important, weak regulation can attract jobs from other states. I believe that the appropriate response to this insight is ‘Well, duh.’ The point is that arguing from this experience that depressing wages and dismantling regulation in America as a whole would create more jobs — which is, whatever Mr. Perry may say, what Perrynomics amounts to in practice — involves a fallacy of composition: every state can’t lure jobs away from every other state.

In fact, at a national level lower wages would almost certainly lead to fewer jobs — because they would leave working Americans even less able to cope with the overhang of debt left behind by the housing bubble, an overhang that is at the heart of our economic problem.

So when Mr. Perry presents himself as the candidate who knows how to create jobs, don’t believe him. His prescriptions for job creation would work about as well in practice as his prayer-based attempt to end Texas’s crippling drought.”

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