Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In the preceeding paragraph Krugman says:

The market economy is a system for organizing activity -- a pretty good system most of the time, though not always -- with no special moral significance. The rich don't necessarily deserve their wealth, and the poor certainly don't deserve their poverty; nonetheless, we accept a system with considerable inequality because systems without any inequality don't work.

Then Krugman says:

Sweden works, Cuba doesn't.

This pretty clearly implies tht the amount of equality in Cuba is too great for the economy to work. And Krugman ignores the massive punitive behavior of Cuba's former trading partner to the north. Krugman also ignores that our economic system deliberately excludes moral considerations while having insisted on remaking the society to serve the needs of the economy. That the way in which this has been done is necessary is an underlying assumption, not a demonstrated fact. Refusing to grant the assumptions of Classical and Neo-Classical Economics has come to constitute an act of opting out of the discussion, in a Rawlsian consensus approach. That is the problem, especially when it has repeatedly been shown that the Classical and Neo-Classical approaches have major problems and little predictive power. The Rawlsian consensus has come to exclude all who do not drink the Cool Aid.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Oct 2nd, 2010 at 01:55:53 PM EST
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For years I have tried to read between the lines in Krugman's writings- tried to parse out what he says that is needful to say in order for him not to lose that powerful platform over there in New York, a loss that a stronger statement might bring about, and what might be such bull as his Cuba statement.
I honestly think he sees the market model as a basically good one, and is, in the end, a tweaker.
It's just that his tweaks are bigger.

Capitalism searches out the darkest corners of human potential, and mainlines them.
by geezer in Paris (risico at wanadoo(flypoop)fr) on Sun Oct 3rd, 2010 at 06:58:54 AM EST
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There's nothing wrong with markets: it's rentier profits that are the problem.

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Sun Oct 3rd, 2010 at 12:49:45 PM EST
[ Parent ]


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