Today’s job report throws more cold water on Krugman’s thesis that inequality is bad for the economy or that ‘GOP imposed austerity’ has hurt employment.
After a winter slowdown, the job market hit a milestone in March as the private sector finally recovered all the jobs lost in the 2008 financial crisis.
I hate to say it, but inequality doesn’t keep me up at night
Yet again, Krugman’s rhetoric is abundant in liberalism and bereft of facts. There is not an iota of concrete, empirical evidence that rising inequality is bad for the U.S. economy. It’s based on a assumption that inequality should be bad for the economy based on the premise that inequality will hurt consumption, but again, the actual economic data contradicts this. Furthermore, US GDP growth is still stronger than countries that have much less inequality, like all of Europe.
The left is waging war against the consumer and losing. They want to scare people into not spending by spreading fear about the economy being weak.
But aren’t we still supposed to be a recession, says the left.
Overall, no correlation between gini coefficient and economic growth.
And let’s not forget Krugman has made numerous wrong predictions in 2010-2012 that Greece would be ejected from the Eurozone.