Business Insider recently reported that Krugman may be discreetly admitting that he has made a serious oversight with regard to the viability of Social Security. Automation is eliminating jobs at such a rate that the payroll tax funding source may be in peril.
________________________________ From: Edmund Storms [mailto:stor...@ix.netcom.com] Sent: Tuesday, January 29, 2013 3:30 PM To: vortex-l@eskimo.com Cc: Edmund Storms Subject: Re: [Vo]:Another article about the impact of automation on employment On Jan 29, 2013, at 1:07 PM, Jed Rothwell wrote: Ed Storms wrote: Thanks Mark. Their view of reality differs significantly from what the people I read describe. I tend to believe my people because they predicted the 2008 collapse while Krugman did not. . . . Krugman did predict it, and warned against it several times. Such as here, in 2005: http://www.nytimes.com/2005/05/27/opinion/27krugman.html?_r=0 He repeatedly described the banks' investments in real estate as junk. Jed, I read this article and I see no concern except the usual generalities. He observes that a bubble was being created in the housing market. He even observed, apparently approvingly, that the government would create another after this one bursts, although he did not anticipate the way this is presently being done. He made no mention that this bubble would almost bring down the entire world ecconomy. I will give him some credit, He was not as calm about the problem as was Sir Greenspan. Meanwhile, other people were very exact about what would happen and when - three years later from this article. In fact the difference is frightening similar to that earlier. Krugman sees no problem with the status quo while the people I read are in a panic. Wrong again. He is very much against the status quo. He is not in a panic for the same reason I am not, and my mother would not be. It is a personality thing. I also do not like to be in a panic. As a result, I lost a lot of money during the 2008 collapse by not taking the panic seriously. I do not intend to let this happen again. Ed We don't get into a tizzy, perhaps even when we should. Case in point: my mother was riding a trolley car past the Blair House on November 1, 1950. President Truman was living there while the White House was being rebuilt. There was a series of loud bangs. Someone said, "they're trying to assassinate the president!!" My mother said, "don't be silly; it is just a car backfiring" and went back to her newspaper. It turned out someone was trying to assassinate the president. - Jed
