Paul Krugman: Turning a Blind Eye to the Obvious
Calculated Risk Muses on Labor Force Participation and the Unemployment Rate

It's Not About Villains, It's About Incentives for Politicians

Tyler Cowen glosses my critique of his New York Times article:

Marginal Revolution: Assorted links: Brad DeLong on the fiscal illusion; it's about villains.

I think he is wrong: it's not about villains, but it is about incentives. Politicians who behave badly--who argue for and support destructive policies--should feel their bad behavior in their chances of reelection. If politicians don't have good incentives, they won't behave well.

And if economists don't teach their students which policies are destructive and which politicians support such policies, then their chances of reelection will not be affected by their bad behavior.