A leftist inflation-fighting idea so bad even Krugman couldn't take it
Economically illiterate leftists in university posts teaching economics have come up with the perfect solution to Joe Biden's raging inflation: price controls.
The kind that Fidel Castro, Hugo Chávez, the Chicoms, Zimbabwe, and the Soviets have done to turn their countries into communist paradises.
Such as this one, from a low-level wokester academic, spouting her "wisdom" to millions of other leftists in the pages of the left-wing Guardian:
We have a powerful weapon to fight inflation: price controls. It’s time we use it | Isabella Weber https://t.co/K7xJki2zRi— The Guardian (@guardian) December 29, 2021
Even the Krugster, who's not a guy you'd like to take investment advice from when he's out championing Democrats over Economics 101, couldn't take it:
When even Krugman calls out the idiocy… pic.twitter.com/T4s3m0eyDy— Rothmus 🏴 (@Rothmus) December 31, 2021
The screen shot:
Wow. That's reality. Because any economist worth his salt will tell you the same thing. Price controls don't work.
Despite his "wrong way" career as an economic pundit, Krugman apparently still has residual standards as an economist.
It created a stir on Twitter, and leftists had a cow. Then he went back to being Krugman the Democrat shill, deleting his tweet and apologizing for it, comically enough, in the name of civility.
Deleting, with extreme apologies, my tweet about Isabella Weber on price controls. No excuses. It's always wrong to use that tone against anyone arguing in good faith, no matter how much you disagree — especially when there's so much bad faith out there.— Paul Krugman (@paulkrugman) January 1, 2022
Krugman's never civil. He's famous for his rat-like nastiness to others, and this is probably first time he's ever used such a claim.
What more likely happened was that someone whispered into his ear that doddering Joe Biden was taking advice from someone who supports these bad and guaranteed-to-fail price-control ideas. It's well known that Joe is desperate about the rising inflation situation in the U.S., with prices of basic goods such as meat, bacon, gas, electricity, medicine, and bigger*ticket items such as cars eating into consumer incomes. It's a tip-top issue with voters, and it's tanked the old fool's voter approval ratings, which is the only thing about it that bothers him.
Worse still, it was brought on by his own money-press economics, running the Fed's printing presses to pay for all of his giant government handouts and bureaucrat-hiring sprees. That's Joe's policy, and he's sticking with it, so we know he's looking for some sort of quick fix to placate angry voters in time for the midterms. He may well be all in on price controls. We know his team has been denouncing "corporate profits" same as this economic subliterate has, writing in the pages of the Guardian. Who's she? This funny tweet tells her story:
My first thought was "UMass or New School?" Turns out that it's both! New School PhD working at UMass.— Howard Wall 💰📈📝 (@HJWallEcon) December 30, 2021
The man could tell where she was from before he knew who she was.
The more interesting stuff came from people from other countries who know about price controls up close and personal. Here are some choice tweets:
If price controls work, there would be no inflation nowhere. Greetings from Argentina, Price Control And Inflation Experts.— Juan Martin H Enduro (@JuanMartinHein1) December 30, 2021
And we mexicans are also experts!— The Amazing Cutter Biondo (@CutterBiondo) December 31, 2021
Agree. Price controls are common in Argentina and Venezuela, and guess what, they do NOT work.— Juan Diego Sanchez (@Juan_Diego1999) December 30, 2021
Just look at Latin America as lab. Used Price Controls dozen times, EVERY time failed. The outcome is a bigger mess. It is a really stupid idea. But the likelihood of ideas of this sort in an already messed scenario, is expected. Good Luck!— Eurico D'Amorim (@EA_IFConsultant) December 30, 2021
Basically, it's an absolute dog of an idea, and anyone who has lived through such price controls recalls the corruption, shortages, factory shutdowns, job losses, and shambles brought on by this awful measure to control markets. Wanna know why Soviet-era Russians stood in those long, long lines in the snow for a loaf of stale bread? Wanna know how Fort Apache in the Bronx got going? Wanna know why Cubans make $18 a month, and Venezuelans have run out of oil? Yep, you got it: it's all price controls, the disaster that just keeps giving in so many different ways.
Even John Maynard Keynes (or if you want to go all AOC about it, Milton Keynes), whom Krugman claims to take his marching orders from, didn't care for price controls, saying price controls should be used only as a last resort.
That explains the Economics 101 that kicked in when Krugman rightly recognized the economic idiocy of this very bad idea that should be laughed out of the classrooms.
Now he's backtracking because he's got some social status to look out for or something. But that horse has left the barn. We heard him the first time, speaking Economics 101, that price controls are an atrocious idea and anyone still expounding for them at this late date and age is clearly either a Chicom shill or simply an idiot.
Krugman called it right the first time, and yes, we all now know what he really thinks of this stupidity. He still has at least some standards. Joe Biden and all his far-left handlers had better have some, too, because Krugman's outburst has let the cat out of the bag.
Image: Twitter screen shot.