Paul Krugman argues Republican partisanship masking success of ‘Bidenomics’

September 13, 2023 06:16 PM

Economist Paul Krugman appeared to suggest that the public is convincing themselves they are poor under “Bidenomics.”

“Even optimists are just stunned by how quickly and how painlessly inflation has come down,” Krugman told CNN’s Christiane Amanpour. “Inflation not too far from the target of 2% and under 3% by most measures, and all of that just achieved painlessly. … This is great, this is a ‘Goldilocks economy.'”

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Krugman’s analysis comes amid inflation rising 3.7% in August and many people struggling under President Joe Biden.

“The economic data have been just surreally good. Even optimists are just stunned,” says Nobel Prize-winning economist @paulkrugman. So why do polls show most Americans don’t think the economy is doing well? “There’s a really profound and peculiar disconnect going on.” pic.twitter.com/MNFhzZ2hh3

— Christiane Amanpour (@amanpour) September 12, 2023


However, the economist said behavior, including discretionary spending, points to an economy that is not as “disastrous” as people are making it out to be.

“We don’t really understand why this is happening, and I can come up with multiple stories, but it is I think important to point out that it is a really profound and peculiar disconnect going on,” Krugman said.

“There are people hurting, but … it’s not what the polls are capturing,” he added. “We’ve just seen a big jump in child poverty because some of the pandemic aide programs have been withdrawn … but that’s not what these numbers are capturing. A very large part of it is partisanship.”

Partisanship in a divided country has led to Republicans giving the current economy a “worse rating than the economy of 1980, when we had 7.5% unemployment and 14% inflation,” according to Krugman.

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Such analysis is nonsensical, he said.

“It’s clear there’s a strong element of just tribalism,” Krugman said. “This is what people think they should say about the economy rather than an actual perception.”

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