DEFEAT: Paul Krugman Admits, ‘I Got Inflation Wrong’

New York Times Paul Krugman the economist appears to have accepted defeat over inflation. He adds yet another layer to his belt for being consistent wrong on economic matters.

Krugman sent a shock tweet. conceded: “I got inflation wrong; I didn’t see the current surge coming. What is the problem? However, I was not convinced that the fiscal stimulus of early this year would increase demand as strongly as it did. [economist Larry Summers] et al predicted.” But in a desperate attempt of self-exaltation, Krugman still tried to hedge his concession by saying demand hasn’t boosted as much as Summers had been warning about. “[I]n fact, so far it hasn’t,” he said, as if that was any consolation to him being wrong. He claimed, “Real final demand (excluding inventories) is up 2.6% over the past two years. That’s well short of normal growth in potential output.” However, he tried to use a chart of Gross Domestic Product to support his argument. Noah Williams, Manhattan Institute Adjunct Fellow pointed out: “Surprised [Krugman] can identify demand by looking at a graph of GDP.” Poor Krugman. He just got through writing a pitiful op-ed Nov. 11, pleading to readers: “History Says Don’t Panic About Inflation.”

I’m trying to make sense of my views on inflation. The current inflation surge was not what I expected. What is the problem? But why?

— Paul Krugman (@paulkrugman) November 14, 2021

Krugman slammed the team for failing to hit the mark again on “supply-chain issues in meeting huge demand for durable goods and withdrawal of workers from the labor force, i.e. Great Resignation.” However, Krugman didn’t pinpoint the root cause of these problems. The Wall Street JournalThere are two main sources of the problem. The sources it mentioned were: “government and employer vaccine mandates that set ultimatums for workers” and Democratic Party policies making “quitting an easier economic option” through a litany of federal unemployment benefits.” So much for Krugman’s premature celebration in July of so-called “Morning in Joe Biden’s America.”

Surprised he can identify demand by looking at a graph of GDP https://t.co/QBUsGGkuFE

— Noah Williams (@Bellmanequation) November 14, 2021

Furthermore, The Journal editorial board noted how President Joe Biden and the Federal Reserve “squeezed the supply side with incentives not to work, restrictive mandates, and the promise of more regulation and higher taxes. The result? 5% inflation. supply-chain disruptions that CEOs say will stretch well into 2022 and maybe beyond.” Krugman seems hell-bent on protecting his “very strong” case for “Bidenomics.” He recently tried to insulate Biden by embarrassingly claiming the president had “no control” over the spike in gas prices.

Krugman did suggest that his hedging “Although it doesn’t necessarily mean inflation will always be temporary, I still believe this is the best option. But it is important to realize that the story is more complicated than excessive stimulus.” Even his quasi-admission that inflation may or may not be “transitory” is still quite a hedge from his Sept. 10 op-ed, in which he stated definitively in his headline: “Wonking Out: I’m Still on Team Transitory.”

Take the “L” and move on Krugman.

Conservatives under attackFor more information, contact ABC News (818460-7477), CBS News (219-975-3247) or NBC News (220-664-6192). You will be asked to report that Krugman has admitted defeat in the fight against inflation.