During the Q&A, I asked Krugman that since he was critical of cutting tax rages, then would he favor going back to the 70 percent top rates that existed before they were cut in 1981. Krugman's answer: "No! Those rates were insane!" (His term)
I am reminded of that answer in reading his blog post today about the "postwar system." (Krugman conveniently leaves out the collapse of the Bretton Woods accords in 1971, but since he considers money just something to be printed, I guess he would have considered that to be a good thing.) He writes:
Here’s what I think: inflation did have to be brought down — and Paul Volcker, not Reagan, did what was necessary. But the rest — slashing taxes on the rich, breaking the unions, letting inflation erode the minimum wage — wasn’t necessary at all. We could have gone on with a more progressive tax system, a stronger labor movement, and so on. (emphasis mine)So, Paul, what is it? And if Krugman really wants me to believe that the standard of living for Americans was higher in the 1970s than it was in the past decade, well, I would like to sell him some ocean-front real estate -- in Nevada.