When someone is not being noticed, there’s the saying, “What am I? Chopped liver?”
There is something that Paul Krugman is simply not noticing.
First, let me quote Mr. Krugman from his recent post, The Depressed Economy is all about Austerity.
“I don’t want to pretend to spurious precision here. Instead, I just want to make the point that given what we know and have learned about macro these past five years — and given the modest recovery that has taken place — we’re now at a point where, to repeat, to a first approximation the depressed state of the economy is entirely due to destructive fiscal policy.”
It’s at this point that labor share of national income which has dropped 5% since the crisis says to Mr. Krugman, “What am I? Chopped liver?”
Mr. Krugman by using the word “entirely” simply has no appreciation, no conceptual importance, no apparent model, to say that labor’s fallen share of output income is depressing the economy. … Wow
To me this is another character-defining moment of Mr. Krugman, who once said that living wages were not an economic issue, but a moral issue. He now seems to be saying that low labor share is a moral issue, not an economic one. Again Wow…