Paul Krugman forecasts dark days

big think, 28 December 2008

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A year after his first conversation with Big Think, Paul Krugman sat down with us again recently to look at the state of the US economy. Twelve months hence, things have not improved. Krugman described the economic fragility during his first conversation last December as a "near recession," an observation that is now a forgone conclusion. Krugman's sober critique of the market has won him wide respect among economic thinkers, and he was awarded the Nobel Prize for Economics in October for his work dating back to the 90s. A congratulatory White House dinner followed during which Krugman said "everyone was on their best behavior." Krugman is famously critical of the Bush administration's economic policy and deregulation in general. The next administration is reportedly reaching out to Krugman for his macro-economic acumen, and there's even been speculation over Krugman is being tapped for a post under Obama, but, as Krugman put it to us, bureaucracy is not his strong suit. In a recent New York Times column, Krugman instructs Americans that the next bubble--housing, dot com or some other incarnation--is not coming anytime soon, and they should instead prepare for as much as a year of "economic hell." He struck a similar chord when he broke down depression economics in his second interview with us.

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Comments

Lawrence Efana

30 December 2008 - 6:49pm

The contributions of scientists to science and society are indeed seen in various senses. Interests either for science or society might define the drives at times. At a time when society: the state) openly solicits engagement of the scientist as this story tells, to look beyond the bureaucracy consolidates vocation and professionalism. It is indeed a good opportunity!

oD papers on the economic meltdown leave the impression that economic science has not relinguished harmful traditions. If our Nobel prize winner sees the latter a part of the problem, hence the need for innovation, can't that also come in the form of practical engagement? Afterall science as of today is not in any sense free from bureaucracy either. Join-up to save the nation and the world!