Excerpts: “Unfortunately, this romanticized and sanitized vision of the economy led most economists to ignore all the things that can go wrong. They turned a blind eye to the limitations of human rationality that often lead to bubbles and busts; to the problems of institutions that run amok; to the imperfections of markets–especially financial markets–that can cause the economy’s operating system to undergo sudden, unpredictable crashes; and to the dangers created when regulators don’t believe in regulation” (p. 131-132).

“Specifically, let me suggest that there ate three broad categories of progressive expenditure: investment, benefits enhancement, and major system overhaul, which need to be thought about differently from a fiscal point of view” (p. 210).

“After all, we basically have an Environmental Protection Agency run on behalf of polluters, an Interior Department run by people who want to loot federal land, an Education Department run by the for-profit schools industry, and so on. Why should trade policy be different?” (p. 248).

“Beyond that, America has thrown away its negotiating credibility. In the past, countries signing trade agreements with the United States believed that a deal was a deal. Now they know that whatever documents the U.S. may sign supposedly guaranteeing access to its market, the president will still feel free to block their exports, on specious ground, whenever he feels like it” (p. 256).

“The idea that we have a rising oligarchy is much more disturbing. It suggests that the growth of inequality may have as much to do with power relations as it does with market forces. Unfortunately, that’s the real story” (p. 283).

“What Americans who support ‘socialism’ actually want is what the rest of the world calls social democracy; a market economy, but with extreme hardship limited by a strong social safety net and extreme inequality limited by progressive taxation” (p. 323).

“In general, if people in a field have bogged down on questions that seem very hard, it is a good idea to ask whether they are really working on the right questions” (p. 401).

“The map is not the territory, and it’s O.K. to use different kinds of maps depending on what you’re trying to accomplish: if you’re driving, a road map suffices, if you’re going hiking, you really need a topo” (p. 408).

Krugman, Paul(2020). Arguing with Zombies: Economics, Politics, and the Fight for a Better Future. New York: W. W. Norton & Company.