Saturday, September 20, 2014

Don't Pay Any Attention -- Paul Krugman edition

"Don't pay any attention..." [correction: this is not a quote from Krugman but Mark Thoma's characterization (correct, in my view) of Krugman's argument]

This is advice from Paul Krugman in his column Errors and Emissions. Professor Krugman obviously hasn't paid any attention to the analysis underlying the critique of "growth".


I teach this stuff at university. I pay a great deal of attention to arguments that the "strong measures to limit carbon emissions would have hardly any negative effect on economic growth, and might actually lead to faster growth."

Krugman says "This may sound too good to be true, but it isn’t. These are serious, careful analyses." If, as Krugman suggests you don't pay any attention to the critiques, you can just take his word for it that these are "serious careful analyses."

The fact is, though, that "serious careful analysis" would pay close attention to criticism. These too-good-to-be-true sounding arguments don't pay any attention to the criticism. They are not serious and careful analyses.

Don't pay any attention to what Roefie Hueting wrote about asymmetric accounting entries 20 years ago. Don't pay any attention to what Nicholas Georgescu-Roegen wrote about energy and materials 40 years ago. Don't pay any attention to what Simon Kuznets wrote about national income accounting 60 years ago. Don't pay any attention to what John Maurice Clark wrote about overhead cost shifting 90 years ago. Don't pay any attention to what Jevons wrote 150 years ago about fuel efficiency and consumption. Don't pay any attention to what Tim Jackson and the U.K.'s Sustainable Development Commission wrote about prosperity without growth 5 years ago.

Just don't pay any attention.

The corporate bureaucrats have your best interests at heart and have everything under control. Nothing can go wrong... go wrong... go wrong...

Move along, now. Nothing to see here.

Update: David Nemerson of Baltimore, MD posted the following comment to Krugman's column. It has received 67 "recommends", so far (don't pay any attention to David or to what Bobby Kennedy said 46 years ago):
Until we break the fetish of growth, we are in for a very bumpy ride indeed. Bobby Kennedy's critique of GDP stated it beautifully in 1968: 
"It counts napalm and counts nuclear warheads and armored cars for the police to fight the riots in our cities. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children. 
Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials.
It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile.
And it can tell us everything about America except why we are proud that we are Americans."

Rest of the quote here.

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