Tag: rapid freight rail

Sunday Train: Working on the Railroad – Why Krugman is Wrong

Burning the Midnight Oil for Living Energy Independence

In his inimitable “twisting mainstream economics in as progressive direction as he can accomplish” style, Paul Krugman has made a splash among those following the challenge of our headlong and reckless pursuit of Climate Chaos with a column on the cost of policies to put the brakes on that reckless gamble.

Hat tip to A Siegal, who nailed a critical failing of Krugman’s analysis:

Krugman falls into the trap of discussing the costs of dealing with climate change … a robust cost/benefits analysis would … result in a very serious statement as to the “huge risks and costs of inaction vs the very serious benefits of action”.

In particular, it is a common failing of mainstream economics to assume an economy that naturally tends to full employment, so that policies that boost employment are a cost, when in the real world they are a benefit.

Of course, the oil-industry funded belief tanks will be promoting the idea that Krugman is overstating the case for taking action against climate chaos … when the reality is that he overstates the cost to the public of taking action and so understates the case for taking action.