Krugman for US Secretary of the Treasury – only a suggestion so far but I like it a lot

There was a suggestion published in The Guardian on the weekend that Obama should pick Paul Krugman as the next Secretary of the Treasury to replace Tim Geithner. So many birds would be killed by that one stone that I know it’s not going to happen but the pleasure even of the idea is scrumptious beyond delectation. Here are the nominating words themselves:

President Obama hasn’t picked a treasury secretary yet for his second term, so he has a chance to do something different.

He could ignore what Wall Street and conservative media interests want and pick somebody who would represent what the electorate voted for. And not even just the people who voted for him: there are a lot of Republican voters out there who are also unemployed.

A proposal of the highest calibre and from The Grauniad of all places. Look what a genius Krugman is. He is the very epitome of the Keynesian brand and as pointed out has had one success after another so why not get him to show his stuff by fixing the US and world’s economies all by himself.

Krugman has been right about the major problems facing our economy, where many other economists and much of the business press have been wrong. A few examples: he wrote about the housing bubble before it collapsed and caused the Great Recession; he has forecast and explained that large budget deficits and trillions of dollars of “quantitative easing” (money creation) would not cause inflation or long-term interest rates to rise; and that the ‘confidence fairies’ would not reward governments that pursued austerity in the face of recession.

Most importantly, Krugman is on the side of the majority of Americans. He has written extensively in favor of policies that favor job creation, explained the folly of budget cutting in the face of a weak economy, and opposes cuts to social security and Medicare benefits.

Perfect, perfect, perfect. With Obama’s 100% track record, this must be a natural for him and for them both.

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22 Responses to Krugman for US Secretary of the Treasury – only a suggestion so far but I like it a lot

  1. Mundi

    Krugman has been openly critical of Obama, including calling him a ‘transcendent figure with all style and no substance’, mainly because Krugman believes the deficit should be trillions more and the fed should be printing more money.

    Krugman rides the bandwagon of the day. If you look through his work you can find he has supported and condemned literally every economic action in history. He gushes praise over the credit to housing and creation of the bubble to after dot com bust, the critisises creation of the bubble. His early works are critical of long run deficits, now he says even Americas plan of 10 years at a trillion a year deficit is not enough.

  2. Mundi

    Krugman today is nothing but a fence sitting by-partison political columnist, he will take either side if you throw enough dollars at him. I’ll try and find these two articles he wrote within weeks that are complete opposites of each other (they were early on during the gfc – when he found there was a market for spouting what people wanted to hear).

  3. brc

    There are a dangerous new breed of non-thinking useful idiots who idolise Krugman, usually breathlessly reporting a Nobel Prize in their gushing praise.

    I think it would be a great idea to move this sniper from the sidelines to the main game, so that people can bet on his genius once and for all.

    cause inflation or long-term interest rates to rise

    The Mississippi Bubble took 4 years from inception to bursting. The modern-day John Laws have learnt from all the other busts. The Weimar republic breakdown took 3 years as well.

    Give it time to work through the system.

  4. Tel

    So many birds would be killed by that one stone that I know it’s not going to happen but the pleasure even of the idea is scrumptious beyond delectation.

    Not all of us want to see the whole Western world crash and burn you know… at least, not right away.

    If Obama wants to set the banking industry on fire, how about this guy?

    http://en.wikipedia.org/wiki/James_K._Galbraith

  5. Hey how long would it take to naturalise Swan he couldn’t do as much harm as he is less intelligent and it would get him off our books.

  6. Alfonso

    There is much in the theory that the US can’t recover until it hits a devastating rock bottom via destruction of the USD.
    But there is no case that the Krug will be any better at that than the Geit…….unless of course the Krug and the Bernank are looking to double team with super big USD bales dropped from helicopters, errr randomly?

  7. H B Bear

    Sure why not? There is no indication that either the USA or EU have any ability to take hard decisions in their long term interests. Why not have a few laughs along the way.

    Then retire to a cabin in the woods with about 5 years of tinned tuna till things settle down a bit again.

  8. DaveF

    I absolutely agree.

    He has a Nobel Prize you know. He can do to economics what Mr Obama did for peace.

  9. .

    Go ahead Barry, make out day.

    He is the reverse King Midas. Krugman’s reputation will be shit.

  10. Jarrah

    “He has a Nobel Prize you know. He can do to economics what Mr Obama did for peace.”

    That’s gotta sting :)

  11. Samuel J

    Surely that other Nobel Economics Prize winner Josiah Bartlet is available?

  12. JC

    Krugs stopped being an economist and became a columnist. Henpecking by his aggressively far left wife hasn’t helped either. However as much as I regret saying it he is a gifted economist when he wants to be.

  13. Gab

    Nobel Economics Prize winner Josiah Bartlet

    He was a good president for a Democrat.

  14. samuel j

    The US gov operates in fantasy land so why not bring in a fictional character?

  15. Gab

    The US already has one, Samuel – the composite Obama.

  16. Skuter

    …he wrote about theadvocated for the Greenspan-led Fed to inflate a housing bubble before it collapsed and caused the Great Recession;

  17. JC

    Skuter

    He doesn’t understand monetary economics.

  18. Pingback: Krugman knocks back Tres Sec job he was never offered at Catallaxy Files

  19. mundi

    wow… krugman is in favor of the plan to mint a $1 trillion coin.

  20. Tel

    The US gov operates in fantasy land so why not bring in a fictional character?

    Good idea! Iron Man for Treasury Secretary, and Hulk for Defence.

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