Because I was on the road when Episode 71 posted, I fell behind. So I’ll give the highlights of both Episode 71 and 72 in this post.
Episode 71: On Trump Manufacturing His Own Reality When Things Get Worse
8:30 I explain that Krugman has to do a dance. Originally there was a depression under Obama, then America had to be A-OK at the end of Obama’s term to render Trump’s analysis wrong, and at some point it will have to be awful again, lest Trump not be so bad.
9:50 I explain that Trump’s use of the term “carnage” for inner cities would be par for the course if coming from someone on the left.
14:45 Tom starts listing false things that progressive believe.
23:00 I explain the connection between federal budget deficits and U.S. trade deficits.
30:45 We agree with Krugman that Trump has painted himself into a corner regarding ObamaCare.
39:25 I tackle Krugman’s slippery statistics when he tries to show job creation since 2000 has been adequate.
Episode 72: Will Trump Make Manufacturing Decline Faster?
10:55 I agree with Krugman that Trump has the wrong view of trade; he thinks it’s a zero sum game where one party has to dominate. But then I have a surprise…
17:40 I agree with Krugman that tariffs/free trade don’t destroy/create jobs but rather just rearrange employment.
22:40 I concede a sense in which talking about “job creation” from pro-growth policies is defensible.
24:10 Once again I run through the argument that Trump will unwittingly make the trade deficit “worse” by running a big budget deficit.
25:20 We agree with Krugman that Reagan was very protectionist.
26:45 I point out that Krugman actually has an Austrian-ish theory of what caused the bad recessions of the early 1980s.