What’s Happening to Our Economy Is Like a Natural Disaster
About this episode
Nobel laureate economist Paul Krugman discusses the pandemic economy and the Biden administration's $1.9 trillion relief package. He argues the risks of spending too little far outweigh the risks of overheating, pushing back against inflation hawks and deficit worriers by noting that low interest rates give the government ample fiscal room. The conversation covers the $15 minimum wage debate, whether deficits matter, modern monetary theory, and the strange pandemic pattern of a K-shaped recovery. They also discuss Bitcoin and cryptocurrencies, which Krugman dismisses as a speculative asset with no real economic function, and reflect on how the pandemic accelerated trends like remote work and rapid vaccine development. Krugman remains broadly optimistic that aggressive fiscal policy can deliver a fast recovery.