Economics Is Not a Morality Play': Paul Krugman on Managing Financial Crisis

The transcript features a discussion between David Stockman and Paul Krugman on the U.S. economic system. Stockman criticizes the system as corrupted by debt and crony capitalism, citing the 2008 bailouts as a failure of free markets. Krugman counters, arguing that unmanaged financial crises can lead to mass suffering and that regulation, not depression, is the solution to crony capitalism. They debate the role of the Federal Reserve, interest rates, and the impact of debt. Krugman predicts a slow recovery, emphasizing that economics should focus on practical solutions rather than moral judgments.

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