,REVIEW3 ,! ,CONSCI5CE ( A ,LIB]AL BY ,PAUL ,KRUGMAN 
,LOVE ME1 ,I'M A LIB]AL 

,PEOPLE 3 

,AU?OR 3 ,IA9 ,MC,KAY 

,TEXT 3 

,! ,CONSCI5CE ( A ,LIB]AL1 ,PAUL ,KRUGMAN 7,W4,W4 ,NORTON @& ,CO41 #b#g7 

0ECONOMI/S :O CONT9UE TO CONSID] ECONOMIC =CES ALONE 444 )\T TAK+ 9TO ACC\NT ! IDEOLOGY ( ! ,/ATE1 OR ! =CES ?AT EA* ,/ATE NECESS>ILY PLACES AT ! S]VICE ( ! RI* 444 REMA9 COMPLETELY \TSIDE ! REALITIES ( ! ECONOMIC & SOCIAL WORLD40 7,PET] ,KROPOTK9.<#a.>7 

,?IS IS BO? AN 9T]E/+ & A FRU/RAT+ BOOK4 ,IT IS 9T]E/+ BECAUSE ( ITS EVID5CE ON RIS+ 9EQUALITY 9 ,AM]ICA & ITS CAUSES AS WELL AS ! VIGOR\S DEF5SE ( UNIONS4 ,IT IS FRU/RAT+ BECAUSE ITS IDEOLOGICAL FRAMEWORK 5SURES ?AT OBVI\S CONCLUSIONS 7AT LEA/ TO AN AN>*I/7 >E AVOID$ & ITS SUGGE/IONS ON :AT TO DO >E SO LIMIT$ 7NAMELY A 0,NEW ,NEW ,DEAL074 

,IT IS A WELL-WRITT5 & WELL->GU$ BOOK1 :I* WILL BE READ BY MANY MORE PEOPLE N[ ?AT ,PAUL ,KRUGMAN HAS BE5 AW>D$ ! NON-,NOBEL PRIZE = ECONOMICS4 ,9S(> AS ?IS MAKES PEOPLE AW>E ( ! REALITIES ( NEO-LIB]ALISM 9 ,AM]ICA1 ?IS IS TO BE WELCOM$4 ,H[EV]1 GIV5 ?AT ,KRUGMAN IS PROBABLY ,AM]ICA'S MO/ FAM\S LIB]AL ECONOMI/ & LEAD+ NEO-CLASSICAL SYN!SIS ,KEYNESIAN IT IS USEFUL TO PO9T \T ! WEAKNESSES ( HIS >GUM5TS FROM A LIB]T>IAN POSITION4 

,! BOOK ITSELF IS EASY TO SUMM>IZE4 ,IT IS AN ATTEMPT TO EXPLA9 ! LIB]AL CASE1 :Y 9EQUALITY 9 ,AM]ICA >OSE1 H[ BAD IT IS & A SUGGE/ION ON :AT TO DO AB\T IT4 ,UNUSUALLY = MANY ECONOMI/S1 ,PAUL ,KRUGMAN PLACES POLITICAL DECISIONS AT ! HE>T ( HIS ACC\NT4 ,?AT ! IMPACT ( ! POLITICAL 5VIRONM5T1 HE >GUES1 CAN BE DECISIVE 9 DET]M9+ ECONOMIC EQUALITY 0S\NDS LIKE ECONOMIC H]ESY1 BUT A GR[+ BODY ( ECONOMIC RESE>* SUGGE/S IT CAN BE0 7P4 #g7 BUT 0! TIM+ ( POLITICAL & ECONOMIC *ANGE SUGGE/S ?AT POLITICS1 NOT ECONOMICS1 WAS TAK+ ! LEAD40 7P4 #h7 

,!SE *ANGES HAVE BE5 DRIV5 BY A SMALL NUMB] ( CONS]VATIVES 9 ! ,REPUBLICAN ,P>TY1 :I* 0HAS BE5 TAK5 OV] BY RADICALS1 PEOPLE :O WANT TO UNDO ! TW5TIE? C5TURY40 7P4 #a#f#c7 ,& !Y HAVE1 TO A DEGREE :I* W\LD HAVE BE5 UN?9KABLE A G5]ATION AGO4 ,:ILE 0,AM]ICA 9 ! #a#i#eS WAS A MIDDLE-CLASS SOCIETY10 7P4 #c#h7 ,AM]ICANS TODAY 0LIVE 9 A SECOND ,GILD$ ,AGE1 AS ! MIDDLE-CLASS SOCIETY ( ! PO/W> ]A RAPIDLY VANI%ES40 7P4 #c#i7 ,AM]ICA 9 ! E>LY TW5TY-FIR/ C5TURY IS SIMIL> TO PRE-,NEW ,DEAL ,AM]ICA1 0A L& ( VA/ 9EQUALITY 9 WEAL? & P[]1 9 :I* A NOM9ALLY DEMOCRATIC POLITICAL SY/EM FAIL$ TO REPRES5T ! ECONOMIC 9T]E/S ( ! MAJORITY40 7P4 #a#e7 

,HE DISCUSSES H[ ?IS HAPP5$1 :AT DRIVES 9EQUALITY & :AT CAN BE DONE TO SOLVE IT4 ,ALONG ! WAY HE REFUTES SOME MY?S & ACKN[L$GES SOME REALITY4 ,= EXAMPLE1 ,KRUGMAN >GUES ?AT !RE IS 0NO QUE/ION0 ?AT ,U,S TRADE ) ,?IRD ,WORLD C\NTRIES 0WID5S 9EQUALITY0 & 0R$UCES JOB OPPORTUNITIES = LESS-SKILL$ ,AM]ICAN WORK]S1 :ILE 9CREAS+ DEM& = MORE-SKILL$ WORK]S40 7P4#a#c#e7 :I* MAKES A NICE *ANGE FROM HIS PREVI\S UNCRITICAL DEF5SE ( GLOBALIZATION4 ,HE PRES5TS ! FACTS ?AT ,AM]ICAN HEAL? C>E SY/EM IS POOR COMP>$ TO /ATE-RUN ONES ELSE:]E1 NOT+ ?AT ! 0QUALITY ( C>E !Y PROVIDE1 BY ANY AVAILABLE MEASURE1 IS AS GOOD OR BETT] ?AN \RS4 ,& !Y ALL ( ?IS :ILE SP5D+ MU* LESS P] P]SON ON HEAL? C>E ?AN WE DO40 7P4 #b#a#e7 0,ALL ! EVID5CE01 HE SAYS1 0SUGGE/S ?AT A MORE JU/ SY/EM W\LD ALSO BE *EAP] TO RUN ?AN \R CURR5T SY/EM1 & PROVIDE BETT] C>E40 7P4 #b#a#f7 ,HE PO9TS \T ?AT !SE C\NTRIES DO NOT HAVE 0SOCIALIZ$0 M$IC9E1 BUT RA!R 0SOCIALIZ$ 9SURANCE01 AL?\< HE GETS SOCIALIZATION & NATIONALIZATION MIX$ UP BY /AT+ ?AT ,BRITA9 HAS 0ACTUAL SOCIALIZ$ M$IC9E1 9 :I* ! GOV]NM5T RUNS ! HOSPITALS & DOCTORS >E GOV]NM5T EMPLOYES40 7P4 #b#a#g7 ,HE REFUTES MANY ( ! MY?S ASSOCIAT$ ) ,FRANCE 7PP4 #b#e#d-#f71 ?AT BOGEY MAN ( ! ,AM]ICAN RI<T & PO9TS \T ?AT :ILE ,G,D,P P] CAPITA MAY BE L[] !RE ?IS IS BECAUSE ,FR5* WORK]S WORK #h#f.0 AS MANY H\RS AS ,AM]ICANS1 & ?AT 0WORK+ LESS IMPROVES ! QUALITY ( LIFE EV5 IF IT R$UCES 9COME40 7P4 #b#e#e7 ,UND]LY+ ! BOOK IS ! /RONG CONTRA/ 79DE$1 CONTRADICTION7 BETWE5 HIS >GUM5TS & ! SUPPORT+ EVID5CE ) 0,ECONOMICS #a#a40 

,W9N+ ! CLASS W>3 ,! RESULTS ( NEO-LIB]ALISM 

,! /R5G? ( ,KRUGMAN'S BOOK1 & ! MA9 REASON = LIB]T>IANS TO READ IT1 IS ! EVID5CE HE PRES5TS ON ! /ATE ( WORK+ CLASS ,AM]ICA AFT] #c ODD YE>S ( NEO-LIB]AL CAPITALISM4.<#b.> ,! FACTS SPEAK = !MSELVES4 

,9 #a#i#f#f1 ! TYPICAL MAN 9 HIS #cS WAS E>N+ AS MU* AS HIS MOD]N EQUIVAL5T1 BY ! E>LY #a#i#gS HE WAS E>N+ #a#d.0 MORE4 7P4 #h7 ,9 #b#e1 ! M$IAN 9FLATION-ADJU/$ E>N+S ( M5 WORK+ FULL-TIME 0W]E SLI<TLY L[] ?AN !Y HAD BE5 9 #a#i#g#c0 & IF WE COMP>E E>N+S ( M5 AG$ #ce TO #d#d1 0WAGES W]E #ab P]C5T HI<] 9 #a#i#g#c40 7P4 #a#b#g7 ,9 FACT1 0BY ! 5D ( ! #a#i#eS ,AM]ICAN M5 ) A HI< S*OOL DEGREE BUT NO COLLEGE W]E E>N+ AB\T AS MU*1 ADJU/$ = 9FLATION1 AS WORK]S ) SIMIL> QUALIFICATIONS MAKE TODAY0 7P4 #d#h7 

,AFT] ! ,SECOND ,WORLD ,W>1 ! REAL 9COME ( ! TYPICAL FAMILY GREW BY #b4#g.0 P] YE>1 ) 09COMES ALL ?R\< ! 9COME DI/RIBUTION GREW AT AB\T ! SAME RATE40 ,S9CE #a#i#h1 0M$IUM FAMILY 9COME HAS RIS5 ONLY AB\T 4#g P]C5T A YE>0 7P4 #e#e7 ,M$IAN H\SEHOLD 9COME 0GREW MODE/LY0 FROM #aigc TO #b#e1 ! TOTAL GA9 WAS AB\T #a#f.04 ,YET ?IS 0MODE/ GA90 MAY 0OV]/ATE0 H[ WELL ,AM]ICAN FAMILIES W]E DO+1 AS IT 0WAS A*IEV$ 9 P>T ?R\< LONG] WORK+ H\RS40 ,= EXAMPLE1 0A GA9 9 FAMILY 9COME ?AT OCCURS BECAUSE A SP\SE GOES TO WORK ISN'T ! SAME ?+ AS A WAGE 9CREASE4 ,9 P>TICUL> IT MAY C>RY HIDD5 CO/S ?AT (FSET SOME ( ! GA9S 9 MONEY40 7PP4 #a#b#f-#g7 

,?IS /AGNATION IS1 ( C\RSE1 BE+ D5I$ BY ! RI<T4 ,YET1 AS ,KRUGMAN MEMORABLY PUTS IT3 0,MOD]N ECONOMI/S DEBATE :E!R ,AM]ICAN M$IAN 9COME HAS RIS5 OR FALL5 S9CE ! E>LY #a#i#gS4 ,:AT'S REALLY TELL+ IS ! FACT ?AT WE'RE EV5 HAV+ ?IS DEBATE40 7P4 #a#b#d7 

,ACCORD+ TO NEO-CLASSICAL ECONOMICS1 EA* FACTOR ( PRODUCTION GETS PAID ACCORD+ TO ITS CONTRIBUTION TO CREAT+ COMMODITIES4 ,?US ! WAGES ( LABOR %\LD1 ACCORD+ TO ! !ORY1 RISE 9 L9E ) PRODUCTIVITY4 ,?AT DID HAPP5 PO/W>1 UNTIL 7APPROXIMATELY7 #aih :5 PRODUCTIVITY CONT9U$ TO RISE :ILE WAGES FLATT5$4 ,9 FACT1 ! VALUE ( ! \TPUT ( AN AV]AGE WORK] 0HAS RIS5 ALMO/ #e P]C5T S9CE #a#i#g#c4 ,YET ! GR[+ CONC5TRATION ( 9COME 9 ! H&S ( A SMALL M9ORITY HAD PROCE$$ SO RAPIDLY ?AT WE'RE NOT SURE :E!R ! TYPICAL ,AM]ICAN HAS GA9$ ANY?+ FROM RIS+ PRODUCTIVITY0 7P4 #a#b#d7 ,?IS MEANS ?AT WEAL? HAVE FLOOD$ UPW>DS1 & 0! LION'S %>E ( ECONOMIC GR[? 9 ,AM]ICA OV] ! PA/ ?IRTY YE>S HAS GONE TO A SMALL1 WEAL?Y M9ORITY1 TO SU* AN EXT5T ?AT IT'S UNCLE> :E!R ! TYPICAL FAMILY HAS B5EFIT$ AT ALL FROM TE*NOLOGICAL PROGRESS & ! RIS+ PRODUCTIVITY IT BR+S40 7P4 #b#d#d7 ,UNSURPRIS+LY1 0!RE'S REM>KABLY LITTLE DIRECT EVID5CE = ! PROPOSITION ?AT TE*NOLOGICAL *ANGE HAS CAUS$ RIS+ 9EQUALITY40 7PP4 #a#c#b-#c7 ,P>TICUL>LY AS 09T]NATIONAL COMP>ISONS SUGGE/ ?AT 9/ITUTIONS1 NOT TE*NOLOGY1 >E AT ! HE>T ( ! *ANGES OV] ! PA/ ?IRTY YE>S40 7P4 #a#d#i7 

,KRUGMAN REJECTS ! SUGGE/ION ?AT ?IS WAS DUE TO ! B5EFITS ( SKILLS OR $UCATION1 NOT+ ?AT 0EV5 AMONG HI<LY $UCAT$ ,AM]ICANS1 MO/ HAV5'T SE5 L>GE 9COME GA9S4 ,! BIG W9N]S1 9/EAD1 HAVE BE5 MEMB]S ( A V]Y N>R[ ELITE3 ! TOP #a P]C5T OR LESS ( ! POPULATION40 7P4 #h7 ,9 FACT1 0EV5 ! COLLEGE $UCAT$ HAVE = ! MO/ P>T SE5 !IR WAGE GA9S LAG BEH9D RIS+ PRODUCTIVITY4 ,= EXAMPLE1 ! M$IAN COLLEGE-$UCAT$ MAN HAS SE5 HIS REAL 9COME RISE ONLY #ag P]C5T S9CE #a#i#g#c40 7P4 #a#c#f7 ,! BIG GA9S 9 9COME 0HAVE GONE NOT TO A BROAD GR\P ( WELL-PAID WORK]S BUT A N>R[ GR\P ( EXTREMELY WELL-PAID PEOPLE4 ,9 G5]AL ?OSE :O RECEIVE 5ORM\S 9COMES >E ALSO WELL $UCAT$1 BUT !IR GA9S >5'T REPRES5TATIVE ( ! GA9S ( $UCAT$ WORK]S AS A :OLE 444 ,! OBS]VATION ?AT EV5 HI<LY $UCAT$ ,AM]ICANS HAVE1 = ! MO/ P>T1 SE5 !IR 9COMES FALL BEH9D ! AV]AGE1 :ILE A H&FUL ( PEOPLE HAVE DONE 9CR$IBLY WELL1 UND]CUTS ! CASE = SKILL-BIAS$ TE*NOLOGICAL *ANGE AS AN EXPLANATION ( 9EQUALITY & SUPPORTS ! >GUM5T ?AT IT'S L>GELY DUE TO *ANGES 9 9/ITUTIONS1 SU* AS LABOR UNIONS1 & NORMS40 7P4 #a#c#f7 

,HE COMP>ES A ,C,E,O & S*OOLTEA*]1 BO? $UCAT$ TO ! SAME LEVEL BUT ! LATT] HAS SE5 A MODE/ GA9S :ILE ,C,E,OS HAVE SE5 !IR 9COME RISE FROM AB\T #c TIMES ! AV]AGE WORK] 9 #aig TO MORE ?AN #c TIMES N[4 7P4 #a#c#f7 ,MORE PRECISELY1 AV]AGE ,C,E,O PAY HAS 9CREAS$ FROM #d TIMES ! AV]AGE FULL-TIME WORK] 9 ! #a#i#gS TO #cfg TIMES 9 ! E>LY #bS4 ,! NEXT TWO HI<E/ (FIC]S SAW !IR 9COMES RISE FROM #ca TIMES TO #afi TIMES ! AV]AGE WORK]4 7P4 #a#d#b7 ,FROM AN AN>*I/ P]SPECTIVE1 ?IS IS UNSURPRIS+ AS ! KEY DIFF]5CE IS ?AT A ,C,E,O IS DO+ ! JOB ( A CAPITALI/ & SO IS 9 A POSITION TO MONOPOLIZE ! FRUIT ( O!R PEOPLE'S LABOR4 ,BE+ AT ! TOP ( A HI]>*ICAL ORGANIZATION1 BOSSES >E WELL PLAC$ TO CONCLUDE ?AT !Y CONTRIBUTE MO/ TO ! CREATION ( A COMMODITY & AW>D !MSELVES APPROPRIATELY6 ,& AS ,KRUGMAN NOTES1 ,C,E,O PAY IS DECID$ UPON BY 0CORPORATE BO>DS1 L>GELY SELECT$ BY ! ,C,E,O1 HIRE COMP5SATION EXP]TS1 ALMO/ ALWAYS *OS5 BY ! ,C,E,O1 TO DET]M9E H[ MU* ! ,C,E,O IS WOR?40 7P4 #a#d#d7 

,HE PRES5TS A TELL+ ANALOGY BUT NOT+ ?AT IF ,BILL ,GATES WALKS 9TO A B>1 ! AV]AGE WEAL? ( CLI5TELE SO>S BUT ! PEOPLE ALREADY !RE >E NO BETT] (F4 ,?IS1 HE CORRECTLY >GUES1 IS 0A PRETTY GOOD METAPHOR = :AT HAS ACTUALLY HAPP5$ 9 ! ,UNIT$ ,/ATES OV] ! PA/ G5]ATION4 ,AV]AGE 9COME HAS RIS5 SUB/ANTIALLY1 BUT ?AT'S MA9LY BECAUSE A FEW PEOPLE HAVE GOTT5 MU*1 MU* RI*]4 ,M$IAN 9COME1 DEP5D+ ON :I* DEF9ITION Y\ USE1 HAS EI!R RIS5 MODE/LY OR ACTUALLY DECL9$40 7PP4 #a#b#e-#f7 ,?IS MEANS ?AT ! 0ORD9>Y ,AM]ICAN WORK]S HAVE FAIL$ TO REAP ! GA9S FROM RIS+ PRODUCTIVITY BECAUSE ( RIS+ 9EQUALITY 444 ,IF GA9S 9 PRODUCTIVITY HAD BE5 EV5LY %>$ ACROSS ! WORK=CE1 ! TYPICAL WORK]S' 9COME W\LD BE AB\T #ce P]C5T HI<] N[ ?AT IT WAS 9 ! E>LY SEV5TIES4 ,BUT ! UPW>D R$I/RIBUTION ( 9COME MEANT ?AT ! TYPICAL WORK] SAW A F> SMALL] GA94 ,9DE$1 EV]YONE BEL[ R\<LY ! #i? P]C5TILE ( ! WAGE DI/RIBUTION -- ! BOTTOM ( ! TOP #a P]C5T -- SAW HIS OR H] 9COME GR[ MORE SL[LY ?AN AV]AGE40 7PP4 #a#b#h-#i7 

,:]E HAS ! MONEY GONE8 ,EASY3 0! REALLY BIG GA9S W5T TO ! REALLY1 REALLY RI*40 ,9 FACT1 0ONLY ! TOP #a P]C5T HAS DONE BETT] S9CE ! #a#i#gS ?AN IT DID 9 ! G5]ATION AFT] ,WORLD ,W> ,I,I4 ,ONCE Y\ GET WAY UP ! SCALE1 H[EV]1 ! GA9S HAVE BE5 SPECTACUL> -- ! TOP T5? ( A P]C5T SAW ITS 9COME RISE FIVEFOLD1 & ! TOP 4#a P]C5T ( ,AM]ICAN IS SEV5 TIMES RI*] ?AN !Y W]E 9 #a#i#g#c40 7P4 #a#b#i7 ,SIGNIFICANTLY1 0! TOP 4#a.0 ( ,AM]ICANS1 A CLASS ) A M9IMUM 9COME ( AB\T @s#a4#c MILLION & AN AV]AGE ( AB\T @s#c4#e MILLION1 RECEIVES MORE ?AN #g P]C5T ( ALL 9COME -- UP FROM JU/ #b4#b P]C5T 9 #a#i#g#i0 7P4 #b#e#i7 ,! 9EQUALITY IS A/\ND+4 ,AN ,AM]ICAN IS 9 ! BOTTOM HALF ( ! TOP #a.0 IF !Y E>N @s#a1 TO @s#a#e1 7P4 #a#b#i7 ,9 FACT1 AB\T #g#e.0 ( ! POPULATION HAVE AN 9COME BEL[ @s#g#e11 #f.0 HAVE LESS ?AN @s#e1 7P4 #a#i#c7 ,:I* MEANS ?AT ,JOE ! ,PLUMB] NE$ WORRY AB\T HIS TAXES :5 HE GETS 9TO ! TOP #e.06 

,H[ HAS ?IS IMPACT$ ON ! SO-CALL$ 0MIDDLE-CLASSES08 ,WELL1 IT MEANS ?AT DUE 0TO RIS+ 9EQUALITY1 GOOD P]=MANCE 9 OV]ALL NUMB]S LIKE ,G,D,P HASN'T TRANSLAT$ 9TO GA9S = ORD9>Y WORK]S0 & SO1 SIGNIFICANTLY1 :ILE ! ECONOMY APPE>S TO BE DO+ WELL1 ! PEOPLE 9 IT >E NOT3 0! /AGNATION ( WAGES & M$IAN 9COME 9 ! FACE ( OV]ALL ECONOMIC EXPANSION0 7P4 #b#a7 ,SO 0! AV]AGE HAS GONE UP1 BUT ?AT MEANS NO?+ TO MO/ PEOPLE0 S9CE #ba AS 0CORPORATE PR(ITS HAVE SO>$ 444 & SO HAVE 9COMES AT ! TOP ( ! SCALE4 ,BUT ! WAGES ( MO/ WORK]S HAVE B>ELY KEPT UP ) 9FLATION0 7PP4 #b#a-#b7 

,UNSURPRIS+LY1 GIV5 ?AT 0TRICKLE-D[N0 ECONOMICS HAS 7AS C\LD BE PR$ICT$7 RESULT$ 9 A FLOOD-UP 9 T]MS ( WEAL?1 SOCIAL MOBILITY HAS FALL5 - AFT] ALL1 IT IS EASI] TO CLIMB A HILL ?AN A M\NTA94 ,?IS IS JU/ AS IMPORTANT AS ! EXPLOSION 9 9EQUALITY1 AS ! 0FREE-M>KET0 RI<T >GUE ?AT DYNAMIC SOCIAL MOBILITY MAKES UP = WEAL? & 9COME 9EQUALITY4 ,AS ,KRUGMAN NOTES1 :ILE ,AM]ICANS 0MAY BELIEVE ?AT ANYONE CAN SUCCE$ ?R\< H>D WORK & DET]M9ATION1 BUT ! FACTS SAY O!RWISE40 7P4 #b#d#g7 ,9 REALITY1 MOBILITY 0HI<E/ 9 ! ,SC&9AVIAN C\NTRIES1 & MO/ RESULTS SUGGE/ ?AT MOBILITY IS L[] 9 ! ,UNIT$ ,/ATES ?AN IT IS 9 ,FRANCE1 ,CANADA1 & MAY EV5 9 ,BRITA94 ,NOT ONLY DON'T ,AM]ICANS HAVE EQUAL OPPORTUNITY1 OPPORTUNITY IS LESS EQUAL H]E ?AN ELSE:]E 9 ! ,WE/0 ,)\T ! BL9K]S ( CAPITALI/ IDEOLOGY ?IS %\LD BE UNSURPRIS+3 0,A SOCIETY ) HI<LY UNEQUAL RESULTS IS1 MORE ( LESS 9EVITABLY1 A SOCIETY ) HI<LY UNEQUAL OPPORTUNITY1 TOO0 7P4 #b#d#i7 

,SO 9 />K CONTRA/ TO ,MILTON ,FRI$MAN'S ASS]TIONS 9 ,CAPITALISM & ,FRE$OM1 NOT ONLY IS 0FREE M>KET0 CAPITALISM MORE UNEQUAL ?AN SOCIAL DEMOCRATIC CAPITALISM1 !RE IS LESS SOCIAL MOBILITY4 ,SOME:AT IRONICALLY1 IT TOOK GOV]NM5TS 9SPIR$ BY ,FRI$MAN TO PROVE HIS PRON\NCEM5TS FALSE4 ,NOT1 ( C\RSE1 ?AT ,FRI$MAN BO!R$ TO M5TION ?OSE AWKW>D FACTS 9 ! PREFACE TO ! #d? ANNIV]S>Y $ITION ( ?AT WORK4 

,NE$LESS TO SAY1 ?REE DECADES ( SUCCESSFUL CAPITALI/ CLASS W> AGA9/ ! WORK+ CLASS GOES )\T M5TION 9 POLITICAL CIRCLES1 DOCUM5T+ ITS RESULTS GETS Y\ D5\NC$ AS ADVOCAT+ 0CLASS W>06 

,! ,UNION MAKES Y\ /RONG6 

,ANO!R REASON = LIB]T>IANS TO READ ,KRUGMAN'S BOOK IS = ITS PRO-UNION >GUM5TS4 ,IT IS REFRE%+ TO SEE A RESPECT$ MA9/REAM ECONOMI/ PRES5T+ WORK]S' ORGANIZATIONS 9 SU* A POSITIVE LI<T - P>TICUL>LY AS 0,ECONOMICS #a#a0 DEMONIZ$ !M4 

0,ACCORD+ TO A WIDE RANGE ( S*OL>LY RESE>*10 ,KRUGMAN SUMM>IZES1 UNIONS 0RAISE AV]AGE WAGES = !IR MEMB]%IP2 !Y ALSO1 9DIRECTLY & TO A LESS] EXT5T1 RAISE WAGES = SIMIL> WORK]S 444 AS NONUNIONIS$ EMPLOY]S TRY TO DIM9I% ! APPEAL ( UNION DRIVES TO !IR WORK]S 444 UNIONS T5D TO N>R[ 9COME GAPS AMONG BLUE-COLL> WORK]S1 BY NEGOTIAT+ BIGG] WAGE 9CREASES = !IR WORSE-PAID MEMB]S 444 ,& NONUNION EMPLOY]S1 SEEK+ TO =E/ALL UNION ORGANIZ]S1 T5D TO E*O ?IS EFFECT40 7P4 #e#a7 

,HE >GUES ?AT 0IF !RE'S A S+LE REASON BLUE-COLL> WORK]S DID SO MU* BETT] 9 ! FIFTIES ?AN !Y HAD 9 ! TW5TIES1 IT WAS ! RISE ( UNIONS40 7P4 #d#i7 ,9 ! #a#i#eS1 MORE ?AN #c.0 ( NONAGRICULTURAL WORK]S :]E UNIONS MEMB]S1 COMP>$ TO #a#b.0 TODAY4 7P4 #a#a#a7 ,UNIONS 0W]E ONCE AN IMPORTANT FACTOR LIMIT+ 9COME 9EQUALITY1 BO? BECAUSE ( !IR DIRECT EFFECT 9 RAIS+ !IR MEMB]S' WAGES & BECAUSE ! UNION PATT]N ( WAGE SETTLEM5TS 444 WAS 444 REFLECT$ 9 ! LABOR M>KET AS A :OLE40 7P4 #a#d#i7 ,HE PUTS ! ,UNIT$ ,AUTO ,WORK]S 7,U,A,W7 AT ! C5T] ( ?IS PROCESS1 AS ITS MEMB]S W]E 0GU>ANTE$ WAGES ?AT ROSE ) PRODUCTIVITY0 9 RETURN = 0LABOR PEACE0 ,O!R UNIONS BAS$ !IR DEM&S ( !SE AGREEM5TS1 ) NONUNION WORK]S 0/RONGLY AFFECT$1 BECAUSE ! ?REAT ( UNION ACTIVITY0 L$ !IR EMPLOY]S TO MAT* IT4 7P4 #a#c#h7 ,) ! SMA%+ ( ! UNIONS CAME RIS+ 9EQUALITY1 ) ! 0%>PE/ 9CREASES 9 WAGE 9EQUALITY 9 ! ,WE/]N WORLD HAVE TAK5 PLACE 9 ! ,UNIT$ ,/ATES & 9 ,BRITA91 BO? ( :I* EXP]I5CE %>P DECL9ES 9 UNION MEMB]%IP0 7P4 #b#f#c7 ,LOOK+ AT 9/ITUTIONS & NORMS1 HE >GUES 0,AM]ICA IS UNIQUE01 ) ,BRITA9 SEE+ R5EW$ 9EQUALITY BUT 9EQUALITY 9 ,FRANCE & ,JAPAN *ANG+ LITTLE S9CE #aih 7PP4 #a#d-#a7 

,SO H[ DO UNIONS RE/RICT 9EQUALITY8 ,*ANNEL+ ,JOHN ,K5NE? ,GALBRAI?.<#c.> 7:OM HE HAD DISMISS$ 9 ! #a#i#iS7 HE CORRECTLY >GUES ?AT 0!Y ACT AS A C\NT]VAIL+ =CE TO MANAGEM5T0 7P4 #b#f#c7 ,MORE SPECIFICALLY1 FROM AN AN>*I/ P]SPECTIVE1 !Y HELD 5SURE ?AT WORK]S KEEP MORE ( ! WEAL? !Y CREATE BUT IS MONOPOLIZ$ BY ! BOSSES4 ,:I*1 9 P>T1 EXPLA9S ! RISE ( 9FLATION UND] ,KEYNESIANISM AS COMPANIES TRI$ TO REC\P 9 CIRCULATION 7HI<] PRICES7 :AT !Y HAD LO/ 9 PRODUCTION4 ,!Y ALSO *ECK$ ! ABILITY ( MANAGEM5T TO PAY !MSELVES EXCESSIVE WAGES4 ,UNIONS1 MOREOV]1 BY 5SUR+ HI< WAGES ALL[ GR[+ DOME/IC CONSUMPTION TO BE BAS$ ON 9COME 7NOT DEBT7 :I* BOL/]S AGGREGATE DEM&1 SO R$UC+ ! FRAGILITY ( ! ECONOMY - AL?\< ,KRUGMAN DOES NOT M5TION ?IS4 

,KRUGMAN ALSO CORRECTLY SUPPORTS ! >GUM5T ?AT ! RISE ( ! UNIONS WAS NOT DUE TO 5LI<T5$ POLITICIANS BUT1 RA!R1 DUE TO ! DIRECT ACTION & SOLID>ITY TACTICS ( ! WORK]S !MSELVES4 ,AS HE PUTS IT1 ! 0ALT]NATIVE /ORY 444 PLACES 444 EMPHASIS 444 MORE ON ! 9T]NAL DYNAMIC ( ! UNION MOVEM5T ITSELF 444 ! RIS+ /R5G? ( ! UNION MOVEM5T BECAME SELF-RE9=C+1 AS WORK]S :O HAD ALREADY JO9$ UNIONS PROVID$ CRUCIAL SUPPORT 9 ! =M ( F9ANCIAL AID1 PICKET]S1 & SO ON TO O!R WORK]S SEEK+ TO ORGANIZE40 7P4 #e7 ,NE$LESS TO SAY1 ?\<1 HE DOES NOTE 0! GOV]NM5T'S %IFT FROM AG5T ( ! BOSSES TO PROTECTOR ( ! WORK]S0 7P4 #e#a7 AL?\< HE DOES NOT PLACE ?IS 9 ! CONTEXT ( A MASSIVE ECONOMIC DEPRESSION & ! ?REAT ( SOCIAL REVOLUTION 7NOT TO M5TION ! ILLUSIONS ?AT /ATE CAPITALI/ ,/AL9I/ ,RUSSIA (F]$ AN ALT]NATIVE TO A OBVI\SLY BANKRUPT PRIVATE CAPITALISM74 ,9 ! WORDS ( A C]TA9 ,FRANKL9 ,DELANO ,ROOSEVELT3 

0,I WAS CONV9C$ WE'D HAVE A REVOLUTION .<9 ! ,U,S.> & ,I DECID$ TO BE ITS LEAD] & PREV5T IT4 ,I'M A RI* MAN TOO & HAVE RUN ) Y\R K9D ( PEOPLE4 ,I DECID$ HALF A LOAF WAS BETT] ?AN NONE - A HALF LOAF = ME & A HALF LOAF = Y\ & NO REVOLUTION40.<#d.> 

,:I* PLACES ,KRUGMAN'S COMM5T ?AT 0,F,D,R WAS VIEW$ AS A TRAITOR TO HIS CLASS0 7P4 #d#h7 9 CONTEXT4 ,?AT IS A KEY LESSON ( ! #a#i#cS = N[1 AL?\< ,KRUGMAN DOES NOT /RESS IT4 ,TODAY1 HE RI<TLY SUGGE/S1 ! ,AM]ICAN PUBLIC 0BO? UND]/&S ! ROLE ( GR[+ 9EQUALITY & SUPPORTS GOV]NM5T ACTION TO DO SOME?+ AB\T IT40 7P4 #b#b7 ,YET IF ! PUBLIC DOES NOT TAKE ACTION !MSELVES TO PRESSURE ! GOV]NM5T TO ACT !N ?AT SUPPORT WILL BE ( LITTLE USE4 ,! ,NEW ,DEAL CAME AB\T1 9 P>T1 DUE TO POPUL> PRESSURE FROM BEL[ 7MO/ OBVI\SLY 9 ! UNIONS ORGANIZ+ BUT IT WAS NOT LIMIT$ TO ?AT74 ,SO = ALL ?OSE :O HOPE ?AT ,OBAMA WILL BE LIKE ,F,D,R !N CREATE ! POPUL> MOVEM5TS1 DIRECT ACTION & SOLID>ITY :I* =C$ ,F,D,R TO ACT4 ,IF ?AT IS NOT DONE !N ,OBAMA WILL BE SUBJECT TO ! SAME PRESSURES FROM ! /ATE & CAPITAL AS ,CL9TON1 :OM 7AS ,KRUGMAN NOTES7 GOV]N$ 0TO ! RI<T ( ,RI*>D ,NIXON40 7P4 #e7 

,SIGNIFICANTLY1 ,KRUGMAN DOES PLACE ! FALL ( ! UNIONS 9TO A CLASS /RUGGLE POSITION 7AL?\< HE DOES NOT EXPLICITLY DRAW ! OBVI\S CONCLUSIONS1 NAMELY ?AT CAPITAL & LABOR HAVE OPPOSITE 9T]E/S74 ,HE REJECTS ! 0CONV5TIONAL ANSW]0 ( IT BE+ A RESULT ( ! *ANG+ /RUCTURE ( ! WORK=CE 9 FAVOR ! 0SIMPLE & BRUTAL0 FACT ?AT BUS9ESS 9T]E/S 0W5T ON ! (F5SIVE AGA9/ UNIONS BEG9N+ 9 ! #a#i#gS0 US+ 0H>DBALL TACTICS1 (T5 9CLUD+ ! ILLEGAL FIR+ ( WORK]S :O TRI$ TO ORGANIZE OR SUPPORT$ UNION ACTIVITY40 7PP4 #a#d#i-#e7 ,SO 0! S\RCES ( UNION DECL9E 9 ,AM]ICA LIE NOT 9 M>KET =CES BUT 9 ! POLITICAL CLIMATE CREAT$ BY MOVEM5T CONS]VATISM1 :I* ALL[$ EMPLOY]S TO 5GAGE 9 UNION-BU/+ ACTIVITIES & PUNI% WORK]S = SUPPORT+ UNION ORGANIZ]S40 7P4 #b#f#c7 

,! 9ITIAL BUS9ESS BASE ( MOVEM5T CONS]VATISM WAS 9 SMALL] BUS9ESS1 :O HAT$ UNIONS & SO 0BUS9ESS [N]S :O HAT$ UNIONS W]E A SOLID S\RCE ( F9ANCIAL SUPPORT4 ,& ?IS SUPPORT WAS REW>D$ 444 9 ! SEV5TIES & EI<TIES ,AM]ICA'S POLITICAL %IFT TO ! RI<T EMP[]$ BUS9ESSES TO CONFRONT &1 TO A L>GE EXT5T1 CRU% ! UNION MOVEM5T1 ) HUGE CONSEQU5CE = BO? WAGE 9EQUALITY & ! POLITICAL BALANCE ( P[]40 7PP4 #a#a#d-#e7 ,?IS 0EMP[]M5T ( ! H>D RI<T EMBOLD5$ BUS9ESS TO LAUN* AN ALL-\T ATTACK ON ! UNION MOVEM5T1 DRA/ICALLY R$UC+ WORK]S' B>GA9+ P[]40 7P4 #g7 

,MI*AL ,KALECKI1 ! ,POLI% SOCIALI/ :O 9DEP5D5TLY DEVELOP$ KEY CONCEPTS USUALLY ASSOCIAT$ ) ,KEYNES' ,G5]AL ,!ORY1 PR$ICT$ ! RISE ( NEO-LIB]ALISM & ! ASSAULT ON ! WORK+ CLASS 9 #a#i#d#c3 

0,9DE$1 UND] A REGIME ( P]MAN5T FULL EMPLOYM5T1 ! 'SACK' W\LD CEASE TO PLAY ITS ROLE AS A 'DISCIPL9>Y MEASURE4 ,! SOCIAL POSITION ( ! BOSS W\LD BE UND]M9$1 & ! SELF-ASSURANCE & CLASS-CONSCI\SNESS ( ! WORK+ CLASS W\LD GR[4 ,/RIKES = WAGE 9CREASES & IMPROVEM5TS 9 CONDITIONS ( WORK W\LD CREATE POLITICAL T5SION4 ,IT IS TRUE ?AT PR(ITS W\LD BE HI<] UND] A REGIME ( FULL EMPLOYM5T ?AN !Y >E ON ! AV]AGE UND] LAISSEZ-FAIRE1 & EV5 ! RISE 9 WAGE RATES RESULT+ FROM ! /RONG] B>GA9+ P[] ( ! WORK]S IS LESS LIKELY TO R$UCE PR(ITS ?AN TO 9CREASE PRICES1 & ?US ADV]SELY AFFECTS ONLY ! R5TI] 9T]E/S4 ,BUT 'DISCIPL9E 9 ! FACTORIES' & 'POLITICAL /ABILITY' >E MORE APPRECIAT$ ?AN PR(ITS BY BUS9ESS LEAD]S4 ,!IR CLASS 9/9CT TELLS !M ?AT LA/+ FULL EMPLOYM5T IS UNS\ND FROM !IR PO9T ( VIEW1 & ?AT UNEMPLOYM5T IS AN 9TEGRAL P>T ( ! 'NORMAL' CAPITALI/ SY/EM40.<#e.> 

,SIGNIFICANTLY1 ,KRUGMAN IGNORES ?IS IMPACT ( FULL EMPLOYM5T & ! CLASS /RUGGLES ( ! #a#i#fS & #a#i#gS & !IR IMPACT ON CAPITALISM4 0,AS = ! ECONOMIC CRISIS0 ( ! #a#i#gS1 HE /ATES1 0IT WAS CAUS$ BY A COMB9ATION ( BAD LUCK & BAD MONET>Y POLICY40 7P4 #a#b#c7 ,IT W\LD BE FAIR] TO SUGGE/ ?AT ! SOCIAL & ECONOMIC PRESSURES ( NOT FE>+ BE+ FIR$1 ALONG ) O!R /RUGGLES AGA9/ HI]>*Y ELSE:]E 9 SOCIETY1 HAD ]OD$ WORKPLACE HI]>*Y TO SU* A DEGREE ?AT ,KEYNESIANISM W5T 9TO CRISIS1 A CRISIS :I* NEO-LIB]ALISM SOLV$ BY MEANS ( :AT ,?OMAS ,BALO< T]M$ 0! 9COMES POLICY ( ,K>L ,M>X10 NAMELY 0DELIB]ATELY SETT+ \T TO BASE ! VIABILITY ( ! CAPITALI/ SY/EM ON ! MA9T5ANCE ( A L>GE '9DU/RIAL RES]VE >MY'0 ( ! UNEMPLOY$4.<#f.> 

,SO WE %\LD NOT =GET ! ECONOMIC CLIMATE 7,KRUGMAN'S 0M>KET =CES074 ,AFT] ALL1 ! DEEP ,REAGAN RECESSIONS ( ! E>LY #a#i#hS 7CAUS$1 9 P>T1 BY DOOM$ TO FAIL ,MONET>I/ 9SPIR$ ATTEMPTS TO CONTROL ! MONEY SUPPLY7 RESULT$ 9 MASS UNEMPLOYM5T :I* 5SUR$ ?AT ! UNION BUREAUCRACY WAS NO LONG] NE$$ TO SECURE 0LABOR PEACE0 - IT C\LD BE A*IEV$ BY FE> ( UNEMPLOYM5T4 ,:I* IS ANO!R PROBLEM ) ,KRUGMAN'S ACC\NT1 NAMELY ?AT HE FAILS TO M5TION ! BUREAUCRATIC NATURE ( ! UNIONS1 & ! /UPIDITY ( !IR LEAD]%IPS4 ,!Y DID NOT SEEM TO RECOGNIZE ?AT ! TOL]ANCE ( UNIONS BY BUS9ESS HAD 5D$ UNTIL IT WAS F> TOO LATE & :]E MORE ?AN WILL+ TO SELL\T !IR 7USUALLY MORE MILITANT7 MEMB]S ?AN BREAK !IR COZY L9KS ) MANAGEM5T4 

,SO :5 ! UNION BUREAUCRACY C\LD NO LONG] PROVIDE ! S]VICE ( 0LABOR PEACE0 & :5 ! MASS UNEMPLOYM5T PRODUC$ BY ,MONET>ISM DID ?AT JOB1 !N ! UNIONS C\LD BE BROK5 IGNOR$ - & W]E4 ,& Y\ CANNOT HELP POND]1 ?\<1 :E!R ! QU9TESS5TIAL LIB]AL NOTION ?AT !RE IS H>MONY BETWE5 CAPITAL & LABOR HELP$ TO !ORETICALLY DIS>M ! UNIONS1 MAK+ ! ANTI-UNION ONSLAU<T COME AS A SURPRISE RA!R ?AN ! 9EVITABLE EV5T IT MO/ SURELY WAS4 ,SIMIL>LY1 ! LIB]AL ASSUMPTION ?AT ! CAPITALI/ /ATE W\LD SUPPORT ! UNIONS AGA9/ ! CAPITALI/S 5SUR$ ?AT !Y DID NOT BUILD UP !IR [N /R5G? & ABILITY TO RESI/ REPRESSION4 ,NE$LESS TO SAY1 ?IS ATTACK WAS PLAC$ )9 A G5]AL POLITICAL /RATEGY 9SPIR$ BY ,MILTON ,FRI$MAN'S NEO-CLASSICAL ,MONET>ISM & 0NATURAL RATE ( UNEMPLOYM5T0 - :I* WAS1 AS 9 ,BRITA91 />T$ 9 ! #a#i#gS UND] ! RE=MI/ P>TY 7NAMELY1 ,LABOR & ! ,DEMOCRATS74 

,KRUGMAN NOTES ?AT BECAUSE ! POOR DO NOT VOTE AS MU* AS ! RI*1 PRO-ELITE POLICIES NE$ NOT BE A VOTE LOOS]4 ,YET :Y DO ! WORK+ CLASS VOTE LESS8 ,P]HAPS BECAUSE MANY REALIZE ?AT !Y HAVE ONLY TWO W+S ( ! ,BUS9ESS ,P>TY TO *OOSE FROM8 ,?AT ONE W+ IS MORE POPULI/ 7& SANE7 ?AN ! O!R %\LD NOT DETRACT FROM ?IS1 AS CAN BE SE5 FROM ,KRUGMAN'S NO/ALGIA = ! BI-P>TISANISM ( ! #a#i#eS & #a#i#fS4 ,YET1 AS ,LABOR 9 ,BRITA9 %[S1 EV5 A NOM9ALLY 0LABOR0 P>TY 5DS UP *ANG+ ITSELF RA!R ?AN *ANG+ ! SY/EM1 IMPOS+ ! CO/S ( CRISIS ONTO ITS VOT]S & G5]ALLY ACT+ AS A BUS9ESS P>TY W\LD4 ,:I*1 ( C\RSE1 WAS :AT AN>*I/S PR$ICT$ W\LD HAPP5 & :Y WE FAVOR DIRECT ACTION & ORGANIZATION 9 ! WORKPLACE & COMMUNITY TO A*IEVE *ANGE4 

,SIGNIFICANTLY1 ?IS PROCESS ( RIS+ 9EQUALITY & /AGNANT WAGES WAS SE5 UND] ,P9O*ET'S 0ECONOMIC LIB]TY0 7TO USE ,MILTON ,FRI$MAN'S OBSC5E & MISLEAD+ T]M74 ,) ! ?REAT ( A VISIT FROM ! SECRET POLICE 7& SUBSEQU5T TORTURE & DEA?71 ! LABOR M>KET BECAME AS CLOSE AS POSSIBLE TO ! ATOMIZ$ VISION ( P]FECTION F\ND 9 ! ECONOMIC TEXTBOOKS4 ,UNIONS1 :ILE NOT TOTALLY ELIM9AT$1 W]E MUZZL$ BY LAW & TAM$ BY T]ROR ?AT MEANT ?AT LEAV+ A JOB & F9D+ ANO!R WAS ! ONLY WAY TO IMPROVE Y\R WAGE4 ,YET ACCORD+ TO ,ECONOMICS #a#a1 WAGES %\LD HAVE 9CREAS$ ) PRODUCTIVITY UND] SU* IDEAL CIRCUM/ANCES4 ,!Y DID NOT4 

,ECONOMICS #aa 

,SIGNIFICANTLY1 ATTEMPTS TO RE%APE SOCIETY TO MAKE IT CON=M TO ! ASSUMPTIONS ( NEO-CLASSICAL ECONOMICS HAVE HAD RESULTS SOME:AT AT ODDS ) ! PR$ICTIONS4 ,NOT ?AT WE %\LD BE SURPRIS$1 GIV5 H[ LITTLE ?AT IDEOLOGY REFLECTS REALITY4 ,:I* IS ANO!R /R5G? ( ! BOOK1 NAMELY HIS CONTRA/ BETWE5 ! RESULTS ( SOCIAL ,KEYNESIANISM & NEO-LIB]ALISM ) :AT ! NEO-CLASSICAL OR?ODOXY ASS]TS4 

,YET1 IT IS D\BTFUL H[ MU* ?IS CONTRA/ BETWE5 REALITY & !ORY WILL IMPACT ON ! LATT]4 ,LIKE HIS H]O ,KEYNES1 ,KRUGMAN IS /ILL TI$ TO ! NEO-CLASSICAL OR?ODOXY 7AL?\< TO A F> GREAT] EXT5T7 & SO ANY VALID 9SI<TS HE PRES5TS >E UND]M9$ BY HIS UND]LY+ ASSUMPTIONS4 ,ON ! ONE H&1 HE PROCLAIMS ?AT 0! REAL TRU?S ( ECONOMICS CREATE A NATURAL PROP5SITY 9 ECONOMI/S TO GO ALL ! WAY TO FREE-M>KET FUNDAM5TALISM0 7P4 #a#a#e7 & ?AT ,ADAM ,SMI?'S 09VISIBLE H&0 METAPHOR IS 0A P[]FUL & TRUE 9SI<T40 7P4 #a#a#f7 ,YET1 ELSE:]E1 HE >GUES ?AT ! EVID5CE ( #c YE>S ( NEO-LIB]ALISM 0/RONGLY SUGGE/S ?AT 9/ITUTIONS1 NORMS1 & ! POLITICAL 5VIRONM5T MATT] A LOT MORE = ! DI/RIBUTION ( 9COME - & ?AT IMP]SONAL M>KET =CES MATT] LESS - ?AN ,ECONOMICS #aa MI<T LEAD Y\ TO BELIEVE40 7P4 #h7 

0,/&>D ECONOMY !ORY10 ,KRUGMAN >GUES1 0TELLS US ?AT ATTEMPTS TO DEFY ! LAW ( SUPPLY & DEM& USUALLY FAIL0 & SO 0CONV5TIONAL WISDOM0 W\LD PR$ICT ?AT ! ,NEW ,DEAL W\LD FAIL 7P4 #e#c7 & ?AT TO R$UCE 9EQUALITY W\LD 0WREAK DE/RUCTION ON ! ECONOMY40 ,YET IT 0SUCCE$$ 9 EQUALIZ+ 9COMES = A LONG P]IOD0 & DUR+ 0A TIME ( UNPREC$5T$ PROSP]ITY1 :I* WE HAVE NEV] BE5 ABLE TO RECAPTURE40 7P4 #e#d7 ,9 FACT1 !RE WAS 0A REM>KABLE R$UCTION 9 9COME 9EQUALITY1 ) ALMO/ 5TIRELY POSITIVE EFFECTS ON ! ECONOMY AS A :OLE40 ,HIS CONCLUSION8 0,IF ?AT TALE RUNS C\NT] TO :AT TEXTBOOK ECONOMICS SAYS %\LD HAVE HAPP5$1 WELL1 !RE'S SOME?+ WRONG ) TEXTBOOK ECONOMICS0 7P4 #e#f7 

,IRONICALLY1 ?IS APPLIES TO HIS [N TEXTBOOK ON ECONOMICS 7COAU?OR$ ) HIS WIFE1 ,ROB9 ,WELLS1 & IMAG9ATIVELY 5TITL$ ,ECONOMICS.<#g.>74 ,! CONTRA/ BETWE5 EVID5CE & >GUM5TS )9 ,CONSCI5CE & HIS [N 0TEXTBOOK ECONOMICS0 IS />K4 ,= EXAMPLE1 9 COMP>ISON TO ,CONSCI5CE1 ,KRUGMAN'S TEXTBOOK M5TIONS UNIONS 9 PASS+1 NAMELY ?AT A UNION 0LEADS TO HI<] WAGES = ?OSE WORK]S REPRES5T$0 BY ONE4 7P4 #b#i#f7 ,! MO/ EXT5SIVE DISCUSSION ON !M 7PP4 #g#g#a-#b7 IS 9 ! CONTEXT ( EXPLA9+ H[ /RUCTURAL UNEMPLOYM5T IS CAUS$ :5 ! WAGE RATE IS TOO HI< DUE TO ! 0M9IMUM WAGE1 LABOR UNIONS0 7P4 #g#g#a7 AMONG O!RS4 ,?US UNIONS PU% UP ! WAGES ABOVE !IR M>KET LEVEL1 AS ! 0M>KET WAGE RATE IS EQUAL TO ! EQUILIBRIUM VALUE ( ! M>G9AL PRODUCT ( LABOR40 7P4 #b#i#a7 ,YET1 AS NOT$ ABOVE1 ,CONSCI5CE %[S H[ IMPORTANT UNIONS >E 9 T]MS ( 5SUR+ WORK]S GA9 FROM PRODUCTIVITY GR[? & R$UC+ 9EQUALITY4 ,! CONTRADICTION IS PALPABLE4 

,! LIMITATIONS ( ,ECONOMICS #aa BECOME CLE> :5 HE DISCUSSES ! LABOR M>KET4 ,HE1 RI<TLY1 />TS HIS DISCUSS+ BY NOT+ ?AT 0MO/ PEOPLE HAVE LIMIT$ CONTROL OV] !IR WORK H\RS0 BUT !N IMM$IATELY ADDS3 0,TO UND]/& ! LOGIC ( LABOR SUPPLY 444 IT HELPS TO PUT REALISM TO ONE SIDE = A BIT & IMAG9E AN 9DIVIDUAL :O CAN *OOSE TO WORK AS MANY OR AS FEW H\RS AS HE OR %E LIKES0 7P4 #b#i#h7 ,9 O!R WORDS1 TO 0UND]/&0 ! 0LOGIC0 ( LABOR M>KETS :O NE$ TO IGNORE REALITY6 

,P]HAPS ?IS IS UNSURPRIS+1 = HE /ATES ?AT 0Y\ MI<T SAY ?AT IT ISN'T ECONOMICS IF IT ISN'T AB\T *OICE40 7P4 #f7 ,H5CE ! NE$ TO PORTRAY ! LABOR M>KET AS SOME?+ IT IS NOT1 9 ORD] TO AVOID ! AWKW>D FACT ?AT WORK+ CLASS PEOPLE >E 9 A DEP5D5T POSITION 9 ! LABOR M>KET DUE TO UNEMPLOYM5T 7:I* EXPLA9S BUS9ESS HO/ILITY TO FULL EMPLOYM5T & ! USE ( ! 0NATURAL RATE ( UNEMPLOYM5T0 TO TAME 9FLATION BY =C+ UP UNEMPLOYM5T74 

,KRUGMAN DOES RAISE ! POSSIBILITY ( A BACKW>D B5D+ ,LABOR SUPPLY CURVE 7P4 #c1 P4 #c#i7 BUT USES ! /&>D ONE TO DISCUSS ! 7NEGATIVE1 ( C\RSE7 IMPACT ( UNIONS ON UNEMPLOYM5T4 ,! REASON = ?IS IS ! ASS]TION ?AT AL?\< 0AN 9DIVIDUAL LABOR SUPPLY CURVE MAY B5D BACKW>DS1 M>KET LABOR SUPPLY CURVES >E ALMO/ ALWAYS UPW>D SLOPP+ OV] !IR 5TIRE RANGE40 7P4 #c#i7 ,SO ! SUM ( 9DIVIDUAL CURVES IS DIFF]5T FROM ! COMPON5T P>TS8 ,UNLIKELY4 ,ELSE:]E1 ,KRUGMAN /ATES ?AT 0M>KET DEM& CURVE IS ! HORIZONTAL SUM ( ! 9DIVIDUAL DEM& CURVE ( ALL CONSUM]S0 7P4 #b#d#h7 & >GUES ?AT DEM& IS BAS$ ON AN ORD9AL MEASURE ( UTILITY4 7P4 #b#e#f7 ,YET ORD9AL UTILITY /ATES ?AT 9DIVIDUAL UTILITY CANNOT BE ADD$ TOGE!R6 ,C>D9AL UTILITY 7BAS$ ON AN OBJECTIVE MEASURE ( UTILITY7 CAN BE1 BUT WAS REJECT$ :5 IT BECAME CLE> ?AT IT JU/IFI$ R$I/RIBUTIVE TAXATION 7AS ! UTILITY ( A P\ND TO A POOR P]SON WAS GREAT] ?AN TO A RI* P]SON74 ,! UN=TUNATE SIDE EFFECT ( ?IS WAS ?AT 9DIVIDUAL DEM& CURVES CANNOT BE SUMM$6 

,EQUALLY1 ! USE ( ! /&>D LABOR SUPPLY CURVE FLIES 9 ! FACE ( SUB/ANTIAL EMPIRICAL EVID5CE4 ,AS HE NOTES1 ! 0MO/ COMPELL+ PIECE ( EVID5CE0 = A BACKW>D B5D+ CURVE IS ! ,U,S LABOR M>KET S9CE ! #a#i? C5TURY :]E 0IT SEEMS ?AT ,AM]ICANS HAVE *OS5 TO TAKE ADVANTAGE ( HI<] WAGES 9 P>T BY CONSUM+ MORE LEISURE0 7PP4 #c-#a7 ,:AT DOES OV] #ae YE>S ( ACTUAL HI/ORY MEAN COMP>$ TO ! BEAUTY ( NEO-CLASSICAL ECONOMICS8 ,SO :Y IS IT ASSUM$8 ,SIMPLE1 AN UPW>DS SLOPP+ CURVE IS REQUIR$ TO %[ ?AT UNEMPLOYM5T IS CAUS$ BY WAGES BE+ TOO HI<4 ,IF A BACKW>DS SUPPLY CURVE IS ASSUM$ !N ! NEO-CLASSICAL EXPLANATION = UNEMPLOYM5T IS UND]M9$1 YET IT DOES MAKE S5SE ( ! FACT DISCUSS$ 9 ,CONSCI5CE ?AT ! HI<-UNION D5SITY #a#i#eS & #a#i#fS HAD L[ UNEMPLOYM5T & ?AT 0DESPITE ! L[ UNEMPLOYM5T RATE0 WORK]S 0W]E MU* MORE LIKELY TO RECEIVE UNEMPLOYM5T 9SURANCE ?AN LAID-(F WORK]S >E TODAY40 7P4 #h7 

,MU* ! SAME CAN BE SAID ( ! M9IMUM WAGE1 :I* ! TEXTBOOK >GUES 0G5]ALLY LEAD TO /RUCTURAL UNEMPLOYM5T40 ,H[EV]1 ?IS IS ONLY VALID IF Y\ ASSUME A 0/&>D0 LABOR SUPPLY CURVE 7I4E41 IF Y\ 0PUT REALISM TO ONE SIDE074 ,HE DOES M5TION ?AT 0.<S.>OME RESE>*]S0 7UNNAM$ & UNREF]5C$7 0HAVE PRODUC$ EVID5CE0 ?AT M9IMUM WAGE LAWS DO NOT HAVE ! EXPECT$ EFFECT4 7P4 #g#g#b7 ,?IS IS 9 ! />K CONTRA/ TO ,CONSCI5CE1 :]E HE NOTES ?AT ,C>D & ,KRUEG] 70TWO ( ,AM]ICA'S BE/ LABOR ECONOMI/S07 HAD 0F\ND NO EVID5CE ?AT M9IMUM WAGE 9CREASES 9 ! RANGE ?AT ! ,UNIT$ ,/ATES HAS EXP]I5CES L$ TO JOB LOSSES4 ,!IR WORK HAS BE5 FURI\SLY ATTACK$ BO? BECAUSE IT SEEMS TO CONTRADICT ,ECON #aa & BECAUSE IT WAS IDEOLOGICALLY DI/URB+ TO MANY4 ,YET IT HAS /OOD UP V]Y WELL TO REPEAT$ *ALL5GES1 & NEW CASES CONFIRM+ ITS RESULTS KEEP COM+ 940 7P4 #b#f#a7 

,?IS IS NOT TO SUGGE/ ?AT AN>*I/S %\LD SUPPORT 7OR OPPOSE7 M9IMUM WAGE LAWS AS A SOLUTION TO L[ PAY 7UNIONS >E A F> BETT] OPTION AS !SE 9VOLVE ! WORK]S ACTIVELY DEF5D+ !IR POSITION RA!R ?AN HOP+ ! GOV]NM5T DOES71 IT IS SIMPLY TO %[ ?AT A REAL LABOR M>KET HAS LITTLE 9 COMMON ) ! /&>D NEO-CLASSICAL ASSUMPTIONS4 

,SOME:AT IRONICALLY1 GIV5 HIS LOVE ( ,KEYNES1 HIS TEXTBOOK >GUES ?AT WAGES DID NOT FALL DUR+ ! GREAT DEPRESSION BECAUSE ( 0/ICKY WAGES0 7P4 #g#h#b7 :I* IS A POSITION :I* ,KEYNES EXPLICITLY >GU$ WAS NOT ! CASE 9 ,! ,G5]AL ,!ORY6 ,9 ,*APT] #a#i1 ,KEYNES >GU$ P]SUASIVELY ?AT FULLY FLEXIBLE WAGES & PRICES W\LD NOT 5SURE FULL EMPLOYM5T4 ,IF WAGES DID NOT FALL DUR+ ! #a#i#cS IT WAS PRECISELY BECAUSE1 AS ,KEYNES >GU$1 PRICE FLEXIBILITY 5SUR$ ?AT PRICES ( GOODS FELL AS WAGES FELL4 ,WAGES W]E NOT 0/ICKY0 = ! SIMPLE REASON ?AT WORK]S DO NOT CONTROL ! PRICES ( GOODS - ?AT IS UND] ! BOSSES' CONTROL4 ,KRUGMAN IS AW>E ( ?IS1 ( C\RSE1 BUT /RANGELY ?IS IS NOT REFLECT$ 9 HIS 9TRODUCTORY TEXTBOOK6 ,P]HAPS ?IS IS UNSURPRIS+1 AS HE 7LIKE ! GOOD NEO-CLASSICAL ,KEYNESIAN HE IS7 SEEMS TO BELIEVE ?AT ,KEYNES' >GUM5T IS ONLY APPLICATION DUR+ DEPRESSIONS1 :5 !RE IS A 0LIQUIDITY TRAP40 ,N[1 IF ,KEYNES HAD BELIEV$ HIS IDEAS W]E ONLY APPLICABLE 9 A DEPRESSION !N HE W\LD NOT HAVE CALL$ HIS BOOK ,! ,G5]AL ,!ORY ( ,EMPLOYM5T1 ,9T]E/ & ,MONEY6 

,GIV5 ! DEEPLY POLITICAL HI/ORY ( ECONOMICS1 9CLUD+ NEO-CLASSICAL ECONOMICS1 IT REALLY IS NOT SURPRIS+ ?AT 0! REAL TRU?S ( ECONOMICS CREATE A NATURAL PROP5SITY 9 ECONOMI/S TO GO ALL ! WAY TO FREE-M>KET FUNDAM5TALISM40 ,?IS IS BECAUSE ! IDEOLOGY 7!OLOGY87 WAS =MULAT$ FROM ! LATE #a#i? C5TURY1 9 P>T1 TO DEF5D CAPITALISM FROM ! ?REAT ( ! SOCIALI/ MOVEM5T &1 9 P>T1 TO JU/IFY ! CURR5T SY/EM - ) ! APPROPRIATE ASSUMPTIONS1 NO MATT] H[ UNREALI/IC1 SET AS REQUIR$4 ,OR1 TO USE A MORE REC5T EXAMPLE1 9 ! CASE ( ,MONET>ISM 0NONE ( ! ASSUMPTIONS :I* ,FRI$MAN MADE TO REA* HIS EXTRAORD9>Y CONCLUSIONS BE>S ANY RELATION TO REALITY4 ,!Y W]E *OS5 PRECISELY BECAUSE !Y L$ TO ! DESIR$ CONCLUSION1 ?AT 9FLATION IS A PURELY MONET>Y PH5OM5ON1 ORIG9AT+ SOLELY 9 EXCESS MONET>Y DEM&40.<#h.> 

,9 O!R WORDS1 ! 0REAL TRU?S0 ( NEO-CLASSICAL ECONOMICS 7UNIONS >E BAD1 UNEMPLOYM5T B5EFIT IS BAD1 CAPITAL E>NS & DES]VES ITS RETURN1 ETC47 DID NOT COME AB\T BY ACCID5T BUT W]E SUPPLI$ PRECISELY TO MEET A M>KET DEM& - & ! APPROPRIATE ASSUMPTIONS1 NO MATT] H[ MU* !Y 0PUT REALISM TO ONE SIDE01 W]E 9V5T$ TO 5SURE ! DESIR$ CONCLUSIONS4 ,?IS1 IT %\LD BE PO9T$ \T1 HELP$ UND]M9E ! ,KEYNESIAN REVOLUTION4 ,! ,HICKS.<#i.> 9SPIR$ NEO-CLASSICAL ,KEYNESIAN SYN!SIS C\LD NOT BE DEF5D$ BAS$ ON ! NEO-CLASSICAL MICROECONOMICS AT ITS F\NDATIONS &1 CONSEQU5TLY1 ?IS LAID ! BASIS = ! ,MONET>I/ C\NT]-REVOLUTION ( ! #a#i#gS & ! %UNT+ ( MACROECONOMICS 9TO A SUBCLASS ( MICROECONOMICS4 

,?IS IS NOT TO ATTACK ,KRUGMAN AS SU*1 SIMPLY TO PO9T \T H[ FLAW$ ,ECONOMICS #aa IS 7HE IS SIMPLY REPEAT+ ! OR?ODOXY1 AN OR?ODOXY :I*1 IT %\LD BE NOT$1 ,ADAM ,SMI? HAS LITTLE 9 COMMON )74 ,! :OLE ( ! NEO-CLASSICAL OR?ODOXY RE/S ON WEAK F\NDATIONS & IF ,KRUGMAN IS S]I\S AB\T HIS OP9IONS 9 ,CONSCI5CE !N ! NEXT $ITION ( HIS 9TRODUCTORY TEXTBOOK WILL HAVE TO BE SUB/ANTIALLY REWRITT54 ,P]HAPS ,CONSCI5CE CAN BE CONSID]$ AS A FLAVOR ( ! BOOK ?AT W\LD BE WRITT5 IF Y\ DO NOT 0PUT REALISM TO ONE SIDE08 ,AFT] ALL1 9 HIS DISCUSSION ( ,FRANCE HE NOTES ?AT 0IT'S V]Y DIFFICULT = ANY 9DIVIDUAL1 OP]AT+ ON HIS OR H] [N1 TO TRADE LESS 9COME = MORE LEISURE40 7P4 #b#e#e7 ,H5CE ! NE$ = UNIONS &1 = ,KRUGMAN1 LEGISLATION TO OV]COME ! REALITIES ( ANY REAL LABOR M>KET4 

,YET IF ,KRUGMAN'S ECONOMICS TEXTBOOK W]E TO BE REWRITT5 TO REFLECT REALITY IT W\LD1 UND\BT$LY1 WILL SEE ITS SALES PLUMMET AS ANY TEXTBOOK :I* DOES NOT SUBSCRIBE TO NEO-CLASSICAL ECONOMICS IS UNLIKELY TO BE ALLOCAT$ AS C\RSE READ+ MAT]IAL4.<#a.> ,AS ,JOHN ,K5NE? ,GALBRAI? PUT IT1 0:5 SOME?+ GETS FIX$ 9 ! TEXTBOOKS1 IT BECOMES SACR$ WRIT4 ,! TEXTBOOKS RESPOND TO ! ACCEPT$ TRU?1 ?US TO ! SALABLE TRU? & NOT NECESS>ILY TO ! REAL TRU?40.<#a#a.> ,IRONICALLY1 ! REALITY ( ECONOMICS MAY 5SURE ?AT ,ECONOMICS #aa WILL NEV] BE RE=M$444 

,! VA/ RI<T-W+ CONSPIRACY 

,NEO-LIB]ALISM DID NOT HAPP5 BY ACCID5T4 ,MANY P[]FUL & WEAL?Y PEOPLE HAT$ ! ,NEW ,DEAL & ,KEYNESIANISM & WANT$ TO 5D IT & ACT$ ACCORD+LY4 ,KRUGMAN'S ACC\NT ( ?IS MAKES 9T]E/+ READ+1 P>TICUL>LY AS ! RISE ( MOVEM5T CONS]VATISM & ITS 9/ITUTIONS MAY COME AS A SURPRISE TO MANY ( ! BOOK'S READ]S4 

,AS ,KRUGMAN SUMM>IZES1 0BEG9N+ 9 ! #a#i#gS ! ,G,O,P BECAME1 ONCE AGA91 A P>TY DEF9$ BY ITS OPPOSITION TO TAXES ON ! RI* & B5EFITS GOT ! POOR & MIDDLE CLASS1 & WILL+ TO DO :ATEV] IT TAKES TO PROMOTE ?AT AG5DA40 7P4 #a#e#e7 ,! ,AM]ICAN RI<T HAS CREAT$ 0AN 9T]LOCK+ SET ( 9/ITUTIONS ULTIMATELY ANSW]+ TO A SMALL GR\P ( PEOPLE ?AT COLLECTIVELY REW>D LOYALI/S & PUNI% DISS5T]S10 7P4 #a#f#c7 ( :I* ! NUM]\S CORPORATE & ELITE FUND$ RI<T-W+ ?9K TANKS >E A M]E P>T4 ,?IS IDEOLOGICAL NETWORK IS IMPORTANT1 AS 0! HYPO!SIS ?AT ! RIS+ CONC5TRATION ( 9COME EMP[]$ ! ECONOMIC ELITE1 DRIV+ ! RI<TW>D %IFT ( ! ,G,O,P1 RUNS UP AGA9/ A PROBLEM ( TIM+4 ,! %>P RI<TW>D %IFT ( ! ,REPUBLICAN ,P>TY BEGAN BE=E !RE WAS ANY VISIBLE 9CREASE 9 9COME 9EQUALITY40 7P4 #a#g7 

,?IS FUND+ & NETWORK+ MEANT RESULT$ 9 ! ,AM]ICAN RI<T 0ACQUIR+ :AT AM\NT$ TO A P>TY 9TELLIG5TSIA0 7P4 #a#a#e7 & 0BY ! #a#i#gS ! 9TELLIG5TSIA ( MOVEM5T CONS]VATISM HAD AN E/ABLI%M5T ( ITS [N1 ) F9ANCIAL BACK+ ON A SCALE BEYOND ! WILDE/ DREAMS ( ITS LIB]AL OPPON5TS4 ,TO PUT IT BLUNTLY1 BECOM+ A CONS]VATIVE 9TELLECTUAL BECAME A GOOD C>E] MOVE40 7P4 #a#a#g7 ,?IS HAD CREAT$ 0A PR(ESSIONAL CONS]VATIVE 9TELLECTUAL1 :O HAS MADE HIS 5TIRE C>E] 9SIDE AN 9T]LOCK+ SET ( ESS5TIALLY P>TISAN 9/ITUTIONS40 7P4 #a#a#h7 ,*ANNEL+ ,NAOMI ,KLE9.<#a#b.>1 ,KRUGMAN >GUES ?AT ! 0IDEAS W]E !RE2 ! ORGANIZATION WAS !RE2 ! 9TELLECTUAL CADRES W]E !RE4 ,TO A*IEVE P[]1 H[EV]1 ! MOVEM5T NE$$ A CRISIS40 7P4 #a#b#b7 ,! /AGFLATION ( ! #a#i#gS1 ! 9T5SE SOCIAL & CLASS CONFLICT1 WAS UTILIZ$ TO PU% :AT WAS TO BECOME NEO-LIB]ALISM1 OR ! 0,WA%+TON ,CONS5SUS0 :I* IS N[ UNRAVEL+4 

,IT %\LD BE NOT$ ?AT ! RISE ( ?IS RI<T-W+ SY/EM ( PATRONAGE HAS AFFECT$ AN>*I/S AS WELL4 ,S9CE ! #a#i#gS1 ?ANKS TO FUND+ BY ! WEAL?Y1 ! T]M 0LIB]T>IAN0 HAS1 9 ,AM]ICA1 BECOME ASSOCIAT$ ) RI<T-W+ FREE-M>KET CAPITALI/ IDEOLOGY4 ,?IS MEANS ?AT 9 SPITE AN>*I/ US+ 0LIB]T>IAN0 TO DESCRIBE \R IDEAS S9CE #a#h#e#h1 IT N[ REF]S TO1 EFFECTIVELY1 ! EXACT OPPOSITE ( :AT IT US$ TO MEAN6 ,= EXAMPLE1 ! $ITORIAL COLLECTIVE ( ,LIB]T>IAN ,LABOR ,REVIEW FELT IT HAD TO *ANGE ! NAME ( ! J\RNAL TO ,AN>*O-,SYNDICALI/ ,REVIEW BECAUSE ( ! CONFUSION ITS USE ( ! TRADITIONAL MEAN+ ( 0LIB]T>IAN0 WAS PROVOK+4 ,:ILE ?IS MAY BE A M9OR ANNOYANCE COMP>$ TO ! RI<T-W+ ONSLAU<T ON \R CLASS1 IT IS WOR? M5TION+.<#a#c.> 7P>TICUL>LY SOME ON ! LEFT SEEM 9CAPABLE ( RECOGNIZ+ ! DIFF]5CES1 EV5 :5 !Y PO9T \T ! HYPOCRISIES ( NEO-LIB]ALISM74 

,SO P>T ( ! PROBLEM ) ! RI<T IS ?AT !Y USE EXPRESSIONS 9 UNUSUAL WAYS1 CODE 9 O!R WORDS4 ,KRUGMAN TAKES A LOOK AT ! E>LY ISSUES ( ! ,NATIONAL ,REVIEW 0TO GET A S5SE ( :AT MOVEM5T CONS]VATIVES S\ND$ LIKE BE=E !Y LE>N$ TO SPEAK 9 CODE40 7PP4 #a-#a7 ,IT CELEBRAT$ A ,S5ATE VOTE 0?AT1 IT BELIEV$1 W\LD HELP ! ,S\? CONT9UE ! DIS5FRAN*ISEM5T ( BLACKS0 & 7( P>TICUL> NOTE TO AN>*I/S7 CELEBRAT$ ,FRANCO AS 0AN AU!NTIC NATIONAL H]O0 :O HAD SAV$ ,SPA9 FROM 0A REGIME SO GROTESQUE01 NAMELY ! ,SECOND ,REPUBLIC4 7PP4 #a#b-#c7 ,WE CAN ONLY IMAG9E :AT ! J\RNAL MADE ( ! LIB]T>IAN SOCIAL REVOLUTION ( #a#i#c#f6 

,SO A PROBLEM = AN>*I/S IS ?AT ! RI<T HAVE BE5 SPR\T+ 0ANTI-GOV]NM5T0 RHETORIC = SOME TIME4 ,! REASONS >E DIFF]5T1 ( C\RSE1 9S(> AS WE OPPOSE ! /ATE 79CLUD+ GOV]NM5T7 BECAUSE IT OPPRESSES ! MANY 9 ! 9T]E/S ( ! FEW :ILE ! RI<T OPPOSE ASPECTS ( GOV]NM5T BECAUSE IT SOMETIMES 9T]V5ES TO PROTECT ! MANY AGA9/ ! FEW 7USUALLY TO 5SURE ! /ABILITY & CONT9UATION ( CAPITALISM74 ,! DIFF]5CE IS IMPORTANT1 P>TICUL> AS ! RI<T HAVE NO PROBLEM ) /ATE 9T]V5TION 9 DEF5SE ( PRIVATE PROP]TY1 CORPORATE P[] & SO ON 7SEE ,DEAN ,BAK]'S ,! ,CONS]VATIVE ,NANNY ,/ATE = DETAILS74 

,KRUGMAN MU/ BE AW>E ( ?IS1 YET HE REF]S TO H[ ! RI<T HAS TURN$ 0ANTIGOV]NM5T IDEOLOGY 9TO CONV5TIONAL WISDOM0 RESULT+ 9 ! 0TYRANNY ( ANTIGOV]NM5T IDEOLOGY40 7P4 #c#b7 ,REALLY8 ,!N :Y DO ! ,REPUBLICANS AIM TO BECOME ! GOV]NM5T8 ,:Y1 :5 SUCCESSFUL1 DO !Y USE GOV]NM5T P[] TO FUR!R !IR AG5DA & 9T]V5E 9 ! M>KET TO SECURE CAPITALI/ 9T]E/S8 ,:Y1 !N1 DO !Y WRAP !MSELVES UP 9 ! FLAG & PRAISE ! MILIT>Y8 ,KRUGMAN OBVI\SLY MEANS ANTIGOV]NM5T 0RHETORIC01 :I* MASKS A PRO-/ATE IDEOLOGY4 ,AFT] ALL1 ! /ATE WAS ALWAYS READY TO 9T]V5E DUR+ LABOR DISPUTES DUR+ ! 0,LONG ,GILD$ ,AGE0 TO BREAK /RIKES & SMA% UNIONS :ILE PROTECT+ CAPITALI/S FROM =EIGN COMPETITION AS WELL AS O!R =MS ( CORPORATE WELF>E4 ,& 9 :AT WAY IS ! GOV]NM5T NOT 9T]F]+ 9 ! ECONOMY 0TYRANNY08 ,W\LD ?AT BE BECAUSE !N PRIVATE TYRANNIES ASSOCIAT$ ) PRIVATE PROP]TY1 WAGE LABOR & ECONOMIC P[] HAVE FREE REIGN8 

,IF1 AS ,KRUGMAN /ATES1 TAX CUTS 0DELIV] MO/ ( !IR B5EFITS TO A SMALL M9ORITY ( ! POPULATION :ILE ! PA9 FROM A WEAK5$ SAFETY NET HITS F> MORE WIDELY0 7P4 #a#g#f7 !N :Y DO NO-ELITE PEOPLE VOTE ,REPUBLICAN8 ,FIR/1 BECAUSE LESS POOR PEOPLE VOTE1 SO MAK+ SU* POLICIES LESS UNPOPUL> AT ! BALLOT-BOX4 ,SECONDLY1 !RE IS BIGOTRY4 ,HE PLACES RACISM AT ! HE>T ( :Y !RE IS NO WELF>E /ATE 9 ! ,UNIT$ ,/ATES1 & SUCCESS = ! ,REPUBLICANS 9 SPITE ( !M HAV+ 0POLICIES ?AT FAVOR$ ! 9T]E/S ( A N>R[ ELITE OV] ?OSE ( MIDDLE- & L[]-9COME ,AM]ICANS40 7P4 #a7 ,= EXAMPLE1 ,REAGAN1 REG>DLESS ( SUBSEQU5T MY?OLOGY1 MANAG$ TO MAKE ?IS AG5DA GA9 VOTES 0BY US+ SMALL-GOV]NM5T RHETORIC TO TAP 9TO :ITE BACKLA% )\T BE+ EXPLICITLY RACI/0 7P4 #a#f7 & SO WAS 0! REPRES5TATIVE ( & VEHICLE = :ITE VOT]S ANGRY AT ! BUMS ON WELF>E0 REG>DLESS ?AT 0*EAT+ WAS NEV] A SIGNIFICANT PROBLEM0 & ?AT IT 0NEV] WAS A MAJOR CO/ ( GOV]NM5T40 7P4 #i#b7 ,RACE C\LD BE HIDD5 BECAUSE 0MANY ( HIS SUPPORT]S SURELY DEF9$ ! UNDES]V+ BY ! COLOR ( !IR SK940 7P4 #i#d7 ,HE ALSO NOTES1 9 PASS+1 ?AT 0AN OBSESSION ) O!R PEOPLES' SEXUAL LIVES HAS BE5 AN 5DUR+ FACTOR 9 MOVEM5T CONS]VATISM -- A KEY S\RCE ( ! MOVEM5T'S1 UM1 PASSION40 7P4 #i#f7 ,SIDEL9+ PEOPLE'S PASSIONS ONTO SCAPEGOATS CAN BE USEFUL4 

,KRUGMAN IS OPTIMI/IC ?AT DECREASE 9 RACI/ ATTITUDES WILL R$UCE ,REPUBLICAN APPEAL1 NOT TO M5TION ?AT FUNDAM5TAL 9/ABILITY ( P>TS ( ! ,G,O,P ALLIANCE4 ,= EXAMPLE1 BUS9ESS IS 0PRO-IMMIGRATION BECAUSE !Y LIKE AN ABUNDANT1 *EAP LABOR =CE0 BUT ,G,O,P VOT]S 0ALSO T5D TO BE /RONGLY NATIVI/40 7P4 #b#h7 ,EQUALLY1 ! WEAL?Y ELITE WILL BE CONC]N$ ?AT A VICTORY ( ! RELIGI\S RI<T P>T ( ! ,G,O,P MAY RE/RICT !IR P]SONAL FRE$OMS4 ,KRUGMAN'S HOPES = AN EM]G+ ,DEMOCRATIC REVIVAL ACROSS ,AM]ICA SEEM TO HAVE BE5 V9DICAT$ BY ,OBAMA'S VICTORY - BUT1 !N1 ! COMPLETE MESS ! ,BU% ,JUNTA HAD HELP$ CREATE C\LD NOT BUT HELP4 

,9 ,CONCLUSION 

,I WAS P]PLEX$ :AT TO 5TITLE ?IS REVIEW1 UNTIL ,I READ ,KRUGMAN'S ACC\NT ( ! ,PALM] ,RAIDS4 ,!N IT DAWN$ ON ME1 ! TITLE %\LD BE ,PHIL ,O*S CLASSIC SONG 0,LOVE ME1 ,I'M A ,LIB]AL40 

,:Y8 ,:ILE ! RI<T LAMBA/ES ,KRUGMAN AS BE+ A 0SOCIALI/0 & EV5 A 0,M>XI/01 HE IS AT PA9S TO %[ H[ REASONABLE HE IS4 ,ACTUAL SOCIALI/S DO GET A M5TION 9 HIS BOOK3 0!RE W]E A FAIR NUMB] ( G5U9ELY DANG]\S RADICALS >\ND4 ,9 P>TICUL>1 !RE W]E SURELY F> MORE COMMUNI/S & AN>*I/S 9 ,AM]ICA DUR+ ! ,LONG ,GILD$ ,AGE0 7P4 #c#b7 ,HE GOES ON TO /ATE ?AT 9 #aiai ! ,U,S GOV]NM5T 0BEGAN ! 9FAM\S0 ,PALM] RAIDS 0AFT] A BOMB EXPLOD$0 9 FRONT ( ! HOME ( ! ATTORNEY G5]AL4 7P4 #c#c7 

,! ATTEMPT$ ASSASS9ATION ( ,PALM] MAY HAVE GIV5 ! /ATE AN EXCUSE TO LAUN* ! ,PALM] ,RAIDS1 BUT ,KRUGMAN SEEMS UNAW>E ( ! EXT5SIVE /ATE REPRESSION ( ! ANTI-W> & RADICAL MOVEM5TS 7( :I* ! AN>*I/S W]E AT ! =EFRONT7 :I* PROVOK$ IT4 ,9 O!R WORDS1 IT WAS 9 RESPONSE TO ! WIDE-SCALE /ATE REPRESSION ( REVOLUTION>IES BECAUSE ( !IR ANTI-W> /ANCE & ACTIVITIES4 ,AS ,PAUL ,AVRI* PO9T$ \T1 ! AN>*I/S' 0UNCOMPROMIS+ OPPOSITION TO ! W> BR\<T D[N ON !M ! FULL PANOPLY ( GOV]NM5T REPRESSION4 ,?R\<\T ! C\NTRY AN>*I/ CLUBH\SES W]E RAID$1 M5 & WOM5 BEAT51 EQUIPM5T SMA%$1 LIBR>IES & FILES SEIZ$ & DE/ROY$1 LECTURES & RECITALS W]E DISRUPT$1 NEWSPAP]S & J\RNALS SUPPRESS$40 .<#a#d.> ,?IS WAS UND] A ,DEMOCRAT ,PRESID5T1 ) ,WILSON SIGN+ ! ,ESPIONAGE ,ACT 9 ,JUNE ( #a#i#a#g4 ,IF ,KRUGMAN HAD BE5 >\ND !N1 HIS ANTI-W> >TICLES MAY HAVE SE5 HIM JO9 ,EMMA ,GOLDMAN & ,ALEX&] ,B]KMAN 9 PRISON = S$ITION 79 ,JUNE #a#i#a#g1 A M]E TWO YE>S BE=E ! ,PALM] RAIDS74 

,?IS HI/ORICAL ILLIT]ACY BR+S HIM TO HIS REAL PO9T1 NAMELY ITS AFFECT ON PEOPLE LIKE HIM AT ! TIME4 ,?US ! BOMB+ 0HAD ! 9CID5TAL EFFECT ( DISCR$IT+ OR 9TIMIDAT+ ORD9>Y LIB]ALS1 PEOPLE :O BELIEV$ ?AT CAPITALISM C\LD BE MADE MORE JU/ )\T BE+ ABOLI%$0 7P4 #c#c7 ,AS ,PHIL ,O*S MEMORABLY F9I%$ HIS CLASSIC SONG 0,LOVE ME1 ,I'M A ,LIB]AL03 

0,ONCE ,I WAS Y\NG & IMPULSIVE 

,I WORE EV]Y CONCEIVABLE P9 

,EV5 W5T TO ! SOCIALI/ MEET+S 

,LE>N$ ALL ! OLD UNION HYMNS 

,BUT ,I'VE GR[N OLD] & WIS] 

,& ?AT'S :Y ,I'M TURN+ Y\ 9 

,SO LOVE ME1 LOVE ME1 LOVE ME1 ,I'M A LIB]AL0 

,OBVI\SLY ?IS EXAGG]ATES ,KRUGMAN'S Y\?FUL RADICALISM 7HE HAS GOT MORE RADICAL S9CE ! ,BU% ,JUNTA7 NOR HAS HE CALL$ = /ATE REPRESSION ( ?OSE TO HIS LEFT4 ,RA!R1 IT IS ! P]SPECTIVE ( ! SONG :I* FITS1 NAMELY ( TRY+ TO SAVE CAPITALISM FROM ITSELF :ILE1 AT ! SAME TIME1 TRY+ NOT TO BE TOO RADICAL4 ,SO ! SONG SEEMS FITT+ AS ?IS WAS ALSO ! P]SPECTIVE ( HIS H]O ,KEYNES3 0,! CLASS W> WILL F9D ME ON ! SIDE ( ! $UCAT$ B\RGEOISIE40.<#a#e.> ,?IS SEEMS TO FIT ,KRUGMAN AS WELL1 P>TICUL>LY :5 HE LAMBA/ES ! 7OBVI\S7 /UPIDITY ( ! ,BU% ,JUNTA & ITS CRONY CAPITALISM4 

,ULTIMATELY1 IT W\LD BE A MI/AKE TO ?9K ?AT ! ,NEW ,DEAL WAS OPPOS$ TO BY ALL SECTIONS ( ! CAPITALI/ CLASS4 ,F> FROM IT1 MANY ( ! MORE 0$UCAT$0 ELEM5TS ) IT 79DIVIDUALS & COMPANIES7 WELCOM$ IT & TOOK P>T 9 %AP+ ITS POLICIES 7P>TICUL>LY AS ! ALT]NATIVES SEEM$ TO BE CONT9UAL DEPRESSION OR REVOLUTION74 ,IF ANY 0,NEW ,NEW ,DEAL0 DEVELOPS WE CAN EXPECT ! SAME ?+4 ,= EXAMPLE1 UNIV]SAL HEAL? C>E MAKES S5SE TO MANY L>GE CORPORATIONS ?AT W\LD PREF] NOT TO HAVE ! BURD5 ( PAY+ = PRIVATE 9SURANCE 7P>TICUL>LY :5 !IR 9T]NATIONAL COMPETITORS DO NOT ?ANKS TO NATIONALIZ$ S*EMES74 ,SO :ILE C]TA9 ELEM5TS ( ! CAPITALI/ CLASS 7P>TICUL>LY ITS RI<T-W+7 HAT$ ! ,NEW ,DEAL1 O!RS W]E F> MORE PRAGMATIC &1 9DE$1 SUPPORTIVE ( IT AS !Y RECOGNIZ$ IT AS AN ATTEMPT TO SAVE CAPITALISM RA!R ?AN DE/ROY IT4 

,SO :ILE AN>*I/S WILL FEEL SYMPA?Y = MU* ( :AT DRIVES ,KRUGMAN1 9 ! 5D HIS AIM IS TO KEEP CAPITALISM GO+ & ]ODE ITS R\<] $GES4 ,9 ! /RUGGLE = RE=MS 7]OD+ ! R\< $GES7 AN>*I/S WILL BE WORK+ ) LIB]ALS & O!RS :O DO NOT %>E [N AIMS BUT :O SEEK *ANGE = ! BETT]4 ,IT IS USEFUL1 !RE=E1 = AN>*I/S TO DISCUSS H[ BE/ TO DO ?IS - P>TICUL>LY AS \R IMM$IATE GOAL IS TO 9CREASE \R 9FLU5CE & MOVEM5T & WORK+ CLASS PEOPLE :O CONSID] !MSELVES AS 0LIB]ALS0 >E MORE LIKELY TO AGREE ) \R IDEAS ?AN ! 0CONS]VATIVES0 7! IDEOLOGUES1 P>TICUL>LY ON ! RI<T1 >E PROBABLY BEYOND SAV+74 ,WE MU/1 9 O!R WORDS1 NOT MAKE ! /RUGGLE = RE=MS 7P>TICUL>LY 9 AN ECONOMIC CRISIS7 BECOME AN 5D 9 ITSELF1 P>TICUL>LY IF ! /ATE IS BE+ MORE SUPPORTIVE ( LABOR DUE TO AN ECONOMIC COLLAPSE CAUS$1 9 P>T1 BECAUSE CAPITAL HAS SUCCESSFULLY WAG$ ITS CLASS W> ON LABOR6 

,ULTIMATELY1 ! ,NEW ,DEAL WAS EV5TUALLY SMA%$ BY BUS9ESS = REASONS ,KALECKI PR$ICT$1 AS WILL ANY ,NEW ,NEW ,DEAL IMPOS$ UPON ! SY/EM BY ! NECESSITY ( SOLV+ ! CURR5T NEO-LIB]AL CRISIS4 ,:I* %[S ?AT RE=M+ CAPITALISM CANNOT SUCCE$ SIMPLY BECAUSE ( ! ISSUE ( CLASS P[] WILL NOT DISAPPE> EV5 ) ! BE/ 9T5TIONS ( PEOPLE LIKE ,KEYNES & ,KRUGMAN4 ,SO1 ! MAJOR PROBLEM ) ?IS BOOK IS ?AT IT IS LIB]AL 9 NATURE1 NOT AN>*I/ - :I* IS H>DLY SURPRIS+1 GIV5 ITS AU?OR6 ,YET IT IS WOR? READ+1 SIMPLY BECAUSE ( ! EVID5CE HE PRES5TS ON RIS+ 9EQUALITY & ITS EFFECTS ON SOCIETY4 ,IT IS ALSO USEFUL = ITS REM9D]S ON ! IMPORTANCE ( UNIONS 7EV5 BUS9ESS UNIONS7 & !IR B5EFITS TO WORK]S 7:I* EXPLA9S :Y BOSSES T5D TO HATE !M74 

,YET ! KEY PROBLEM REMA9S1 AS ALWAYS1 ?AT ! FUNDAM5TAL PROBLEM ( CAPITALISM 7WORKPLACE & SOCIAL HI]>*Y7 CAN NEV] BE RE=M$ AWAY & ?AT SOCIAL RE=MS )9 CAPITALISM AIM+ TO 5SURE FULL EMPLOYM5T & 9CREAS$ EQUALITY 7! TWO REALLY CANNOT BE DISCONNECT$7 BR+S ?IS CONTRADICTION TO ! =E4 ,TO QUOTE ,]RICO ,MALATE/A3 

0,! FUNDAM5TAL ]ROR ( ! RE=MI/S IS ?AT ( DREAM+ ( SOLID>ITY1 A S9C]E COLLABORATION1 BETWE5 MA/]S & S]VANTS1 BETWE5 PROPRIETORS & WORK]S 444 

0,?OSE :O 5VISAGE A SOCIETY ( WELL /UFF$ PIGS :I* WADDLE CONT5T$LY UND] ! F]ULE ( A SMALL NUMB] ( SW9EH]D2 :O DO NOT TAKE 9TO ACC\NT ! NE$ = FRE$OM & ! S5TIM5T ( HUMAN DIGNITY 444 CAN ALSO IMAG9E & ASPIRE TO A TE*NICAL ORGANIZATION ( PRODUCTION :I* ASSURES ABUNDANCE = ALL & AT ! SAME TIME MAT]IALLY ADVANTAGE\S BO? TO BOSSES & ! WORK]S4 ,BUT 9 REALITY 'SOCIAL PEACE' BAS$ ON ABUNDANCE = ALL WILL REMA9 A DREAM1 SO LONG AS SOCIETY IS DIVID$ 9TO ANTAGONI/IC CLASSES1 ?AT IS EMPLOY]S & EMPLOYES4 ,& !RE WILL BE NEI!R PEACE NOR ABUNDANCE4 

0,! ANTAGONISM IS SPIRITUAL RA!R ?AN MAT]IAL4 ,!RE WILL NEV] BE A S9C]E UND]/&+ BETWE5 BOSSES & WORK]S = ! BETT] EXPLOITATION .<SIC6.> ( ! =CES ( NATURE 9 ! 9T]E/S ( MANK9D1 BECAUSE ! BOSSES ABOVE ALL WANT TO REMA9 BOSSES & SECURE ALWAYS MORE P[] AT ! EXP5SE ( ! WORK]S1 AS WELL AS BY COMPETITION ) O!R BOSSES1 :]EAS ! WORK]S HAVE HAD !IR FILL ( BOSSES & DON'T WANT MORE60 .<#a#f.> 

,! F9AL ISSUE IS ! QUE/ION ( :AT ,KRUGMAN WILL DO ) HIS SO-CALL$ ,NOBEL PRIZE 9 ECONOMICS & ! PRE/IGE ?AT AUTOMATICALLY G>N]S4 ,?IS BOOK %[S H[ F> FROM REALITY ,ECONOMICS #aa ACTUALLY IS 7AS CAN BE SE5 FROM COMP>+ ITS >GUM5TS ) ,KRUGMAN'S [N TEXTBOOK74 ,?IS1 ,I AM SURE1 WILL SEE HIM ATTACK$ AS BE+ A BAD ECONOMI/ BY HIS PE]S - :I* W\LD BE SOME:AT IRONIC1 GIV5 HIS DISMISSAL ( ,JOHN ,K5NE? ,GALBRAI?'S NON-OR?ODOX1 BUT F> MORE REALI/IC1 ANALYSIS BACK 9 ! #a#i#iS4.<#a#g.> ,YET1 !RE IS HOPE4 ,) ! CURR5T CRISIS ( CAPITALISM1 ECONOMI/S :O REJECT ! NEO-CLASSICAL CONS5SUS HAVE AN OP5+ TO TRANS=M ! SUBJECT1 HOPEFULLY 9TO A SCI5CE4 ,KEYNES WAS P>TIALLY SUCCESSFUL 9 ! #a#i#cS4 ,WILL ,KRUGMAN USE HIS NEW F\ND PRE/IGE TO DO LIKEWISE8 ,IT W\LD BE NICE TO ?9K HE WILL1 BUT ,I D\BT IT4 ,I HOPE ,I'M PROV$ WRONG4 

.<#a.> QUOT$ BY ,RU? ,K9NA1 0,FIELDS ( ,VISION3 ,KROPOTK9 & ,REVOLUTION>Y ,*ANGE01 PP4 #f#g-#h#f ,SUB,/ANCE1 ,VOL4 #c#f1 ,NO4 #b1 PP4 #g#b-#c 

.<#b.> ,KRUGMAN HAS ADDRESS$ 9EQUALITY BE=E4 ,*APT] #e 70,9COME ,DI/RIBUTION07 ( HIS #aiid BOOK ,P$DL+ ,PROSP]ITY3 ,ECONOMIC ,S5SE & ,NONS5SE 9 ! ,AGE ( ,DIM9I%$ ,EXPECTATIONS 7,W4,W4 ,NORTON @& ,COMPANY1 #a#i#i#e7 REFUTES RI<T-W+ CLAIMS ?AT 9EQUALITY HAD NOT RIS54 ,SIGNIFICANTLY1 ?\<1 IT 5D$ ?USLY3 0,?AT DOESN'T MEAN NO?+ CAN BE DONE AB\T IT -- BUT LET'S HOLD (F ON ?AT DISCUSSION UNTIL ! /ORY ( ! LIB]AL REVIVAL HAS BE5 TOLD40 7P4 #a#e7 ,CLE>LY1 AS 9EQUALITY CONT9U$ TO RISE UND] ,CL9TON1 ?AT 0REVIVAL0 WAS NOT ON ! C>DS 9 ! #a#i#iS6 

.<#c.> ,J4,K4 ,GALBRAI? DISCUSS$ ! IDEA ( 0C\NT]VAIL+ P[]0 7:I* 9CLUD$ UNIONS7 :I* >ISES TO C\NT]ACT ! ECONOMIC P[] ( BIG BUS9ESS 9 HIS #aieb BOOK ,AM]ICAN ,CAPITALISM3 ,! ,CONCEPT ( ,C\NT]VAIL+ ,P[]4 

.<#d.> QUOT$ BY ,NEIL ,SMI?1 ,! ,5DGAME ( ,GLOBALIZATION 7,R\TL$GE1 #b#e71 P4 #ab 

.<#e.> 0,POLITICAL ,ASPECTS ( ,FULL ,EMPLOYM5T01 PP4 #c#d#g-#e#f1 ,COLLECT$ ,WORKS ( ,MI*AL ,KALECKI 7,CL>5DON ,PRESS 1 #a#i#i71 VOL4 #a1 P4 #cea 

.<#f.> ,?OMAS ,BALO<1 ,! ,IRRELEVANCE ( ,CONV5TIONAL ,ECONOMICS 7,WEID5FIELD & ,NICOLSON1 #a#i#h#b71 PP4 #a#g#g-#h 

.<#g.> ,PAUL ,KRUGMAN & ,ROB9 ,WELLS1 ,ECONOMICS 7,W4 ,H4 ,FREEMAN1 #b#f7 

.<#h.> ,BALO<1 P4 #afg 

.<#i.> ,/EVE ,KE51 9 *APT] #i ( HIS EXCELL5T BOOK ,DEBUNK+ ,ECONOMICS3 ,! ,NAK$ ,EMP]OR ( ! SOCIAL SCI5CES 7,PLUTO ,PRESS1 #b#a7 DISCUSSES H[ ,HICKS LOBOTOMIZ$ ,KEYNES 9 ORD] TO MADE HIM SAVE = NEO-CLASSICAL ECONOMICS4 

.<#a.> ,A GOOD NON-NEOCLASSICAL 9TRODUCTION TO ECONOMICS TEXTBOOK IS ,HU< ,/RETTON'S ,ECONOMICS3 ,A ,NEW ,9TRODUCTION 7,PLUTO ,PRESS1 ,LONDON1 #b7 

.<#a#a.> ,J4,K4 ,GALBRAI? & ,NICOLE ,SAL+]1 ,ALMO/ ,EV]YONE'S ,GUIDE TO ,ECONOMICS 7,P5GU9 ,BOOKS1 #a#i#h#a71 P4 #ee 

.<#a#b.> ,KLE9 >GUES 9 ,! ,%OCK ,DOCTR9E3 ,! ,RISE ( ,DISA/] ,CAPITALISM 7,P5GU9 ,BOOKS1 #b#h7 ?AT ,FRI$MAN & HIS ASSOCIATES W]E 0WAIT+ = A MAJOR CRISIS1 !N SELL+ (F PIECES ( ! /ATE TO PRIVATE PLAY]S :ILE CITIZ5S W]E /ILL REEL+ FROM ! %OCK1 !N QUICKLY MAK+ ! 'RE=MS' P]MAN5T40 7P4 #f7 ,LIKE ,KLE91 ,KRUGMAN 9 ,CONSCI5CE MAKES A PO9T ( HI<LI<T+ ,MILTON ,FRI$MAN1 0:O L$ ! PU%BACK AGA9/ ,KEYNESIAN ECONOMICS0 7P4 #a#a#e7 EV5 ?\< HIS 0>GUM5T WAS SLIPP]Y &1 ,I'D >GUE1 BORD]$ ON 9TELLECTUAL DI%ONE/Y40 7P4 #a#a#f7 ,SUFFICE TO SAY1 ,FRI$MAN'S FLAW$ CRITIQUE ( ,KEYNES ONLY GA9$ TRACTION BECAUSE ( ! LIMITATIONS ( ,KRUGMAN'S [N NEO-CLASSICAL ,KEYNESIAN SYN!SIS4 ,?OSE ,KEYNESIANS1 LIKE ,NI*OLAS ,KALDOR1 :O REJECT$ ?IS LOBOTOMIZ$ V]SION ( ,KEYNES HAD NOT PROBLEMS REFUT+ ,FRI$MAN & PR$ICT+ ! EVILS TRY+ TO APPLY HIS ,MONET>I/ NOTIONS W\LD CAUSE4 

.<#a#c.> ,?IS MAY HELP NON-AN>*I/S READ+ ?IS :Y ! T]M 0LIB]T>IAN0 HAS BE5 US$ TO DESCRIBE NON-RI<T-W+ POSITIONS 9 ?IS >TICLE 

.<#a#d.> ,SACCO & ,VANZETTI3 ! AN>*I/ BACKGR\ND 7,PR9CETON ,UNIV]SITY ,PRESS1 #a#i#i#a71 P4 #id 

.<#a#e.> QUOT$ BY ,D\G ,H5WOOD1 ,WALL ,/REET 7,V]SO1 #a#i#i#h71 P4 #bab 

.<#a#f.> ,]RICO ,MALATE/A3 ,HIS ,LIFE & ,IDEAS 7,FRE$OM ,PRESS1 #a#i#i#c71 PP4 #g#h-#g#i 

.<#a#g.> ,9 ,P$DL+ ,PROSP]ITY1 ,KRUGMAN >GU$ ?AT ,GALBRAI? HAD 0NEV] BE5 TAK5 S]I\SLY BY HIS ACADEMIC COLLEAGUES1 :O REG>D HIM AS MORE ( A 'M$IA P]SONALITY'0 :OSE 0GR& /ATEM5T0 ( HIS IDEAS1 ,! ,NEW ,9DU/RIAL ,/ATE1 0WASN'T :AT !Y CONSID]$ REAL ECONOMIC !ORY40 7P4 #a#c7 ,IT %\LD BE /RESS$ ! ,GALBRAI? MADE AN EXPLICIT PO9T TO 9CORPORATE POLITICAL1 ECONOMIC & M>KET P[] 9TO HIS ECONOMIC ANALYSIS1 UNLIKE NEO-CLASSICAL ECONOMICS4 

,FROM 3 ,!,AN>*I/,LIBR>Y4ORG4 

,*RONOLOGY 3 
,FEBRU>Y #a#a1 #bba 3 ,REVIEW3 ,! ,CONSCI5CE ( A ,LIB]AL BY ,PAUL ,KRUGMAN -- ,ADD$4 
,JANU>Y #g1 #bbb 3 ,REVIEW3 ,! ,CONSCI5CE ( A ,LIB]AL BY ,PAUL ,KRUGMAN -- ,UPDAT$4 

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