From Bruce Krasting:
Paul Krugman is one of the leading “names” in economics today. There are reasons for his stature. He’s got a Nobel Prize, he’s an academic at a leading university, he writes for the NY Times, and not a week goes by without him being on some TV show or another. If you asked the average guy on the street to name an economist, there’s a good chance the answer would be “Krugman.”
PK has been having a slow motion epiphany over the last month. He has posted four articles on a topic since December 8. He has identified a “phenomenon” that is occurring in the U.S. economy. This new, powerful force that he has stumbled upon, is keeping him awake at night. Clearly, PK is troubled by what he has uncovered. His words:
“It” has really uncomfortable implications. But I think we’d better start paying attention to those implications.
Are you worried yet?
PK drives home the point that what he has uncovered is not now in mainstream economic thinking. He admits that even he missed the signs that something was amiss in the world of modern economics:
Not enough people (me included!) have looked up to notice that things have changed.
OK. What is it that PK has found hidden deep below the economic rocks that is causing him such fits? Grab onto your seats – this is big. PK has observed, for the first time in his economic career, the simple fact that technology has reduced the role of labor in the economy…