Krugman’s Peddling Prosperity is a lucid deconstruction of supply-side economics; a strident (and sensible, as far as I can tell) defense of Keynesian theory after. Krugman’s enfilade against the policy entrepreneurs is strictly bipartisan, but most of his fire is directed against the supply-siders with only a few random shots . Peddling Prosperity. Paul Krugman, Author, Krugman Paul, Author, Krugman, Author W. W. Norton & Company $22 (p) ISBN

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Much of what Krugman wrote in could have been written in and indeed has been repeated by him ad infinitum. Oddly, he spends the last section of the book very concerned that Bill Clinton the guy who signed NAFTA might not be as staunchly free-trade as most economists would like. Return to Book Page. What makes this book so great is its honesty.

Mar 27, Aaron Arnold rated it really liked it Shelves: Krugman is concerned “policy entrepreneurs” took sound conservative theories peddlinh Milton Friedman, Martin Feldstein, and Robert Lucas and warped them into politically potent snake oil of “supply-side” economics. The way risks to economies and societi This is a good book for those interested in economic ideas from an economic history standpoint, though it does an admirable job of explaining many economic principles and failed understandings of economic principles.

Selective application of principles according to the problem at hand, not ideologically.

Most of the book is dedicated to debunking the myth of so-called “Reaganomics” or, supply-side economic theory; however, it would be impossible to call this a partisan effort, as it just as fluently pokes holes in the competitive internationalist paradigms of Clinton and later Democrats.


To ask other readers questions about Peddling Prosperityplease sign up. It’s very cliche to compliment someone as “objective” because they “criticize both sides” think of all that fawning praise for South Park back in the day and take a pox-on-both-your-houses attitude towards big issues. He closes the book with the rise of the neo-Keynesians in the 80s and 90s and explores their ideas about the fallibility of markets and quasi-rational behavior.

Krugman often resorts to personal attacks to discredit his intellectual opponents. Again he laments how academic economic ideas about free trade have been twisted by non-academics to support specific policies and politicians. His main targets are supply-side economics and strategic trade doctrine as opposed to free trade.

Krugman’s intelligence and sense always come shining through–it’s a delight. Account Options Sign in. Lawyers, Economists, and the Harsh, but always rigorous discussion of the history and reasoning behind various alternatives to Keynesian economics over the years are backed up by charts, graphs, and most importantly, the models behind these ideas.

The Great Stagnation of productivity since see posts below. In the face of high unemployment, wages and prices will tend to fall.

Often blasting policy advocates who deviate from orthodox, neoclassical economic analysis, Krugman is sometimes seen as an enfant terrible who is motivated by spite. The focus is always on the data, and while Krugman may not always be right his dismissal of critics of Japan’s trade surplus in the 90s sits oddly with his criticism of China’s seemingly very similar trade surplus in the 00s, even given the vastly different economic circumstanceshe gives you all the tools and ammunition you need to form a coherent counter-argument.

Brief history of modern Economics. One important thing I learned from this book was that although the President is often judged by the performance of the economy during his regime, he or she really doesn’t have nearly as much of an effect on it as general business trends and the actions of the Fed. It would be interesting to see how he feels about policy entrepreneurs now that he’s become NYT columnist and pundit extraordinaire.



He demonstrates that when economic policy had any effect at all, it was generally not the effect that was claimed by the ascendant political proponents. Long-standing animosity between Reich and Krugman see p. Jan 05, Margaux rated it really liked it. The positive role government can play in American economic life. Jul 29, marcos sahade rated it it was amazing.

Peddling Prosperity – Wikipedia

This states that the market does not necessarily produce and nurture the best ideas. Jan 24, Regina Harders rated it really liked it.

Americans can be grateful this institution continues to operate in an independent and non-partisan manner. Krugman does a great job placing the debates of economic policy in 80’s and early 90’s into perspective.

Virtually every section, if you read closely, follows an A-B-C sort of script: Each week, our editors select the one author and one book they believe to be most worthy of pwddling attention and highlight them in our Pro Connect email alert.

Although erudite at times, I appreciated when Krugman refused to boil down some concepts of economics beyond the point where they still have meaning, instead presenting them in their necessary complexity.

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