Paul Krugman: Wisdom, Courage and the Economy

 ”What do we actually know how to do when it comes to economic policy?”:

Wisdom, Courage and the Economy, by Paul Krugman, NY Times: It’s fantasy football time in political punditry, as commentators try to dismiss Hillary Clinton’s dominance in the polls — yes, Clinton Derangement Syndrome is alive and well — by insisting that she would be losing badly if only the G.O.P. had nominated someone else. We will, of course, never know. But one thing we do know is that none of Donald Trump’s actual rivals for the nomination bore any resemblance to their imaginary candidate, a sensible, moderate conservative with good ideas.

Let’s not forget, for example, what Marco Rubio was doing in the memorized sentence he famously couldn’t stop repeating: namely, insinuating that President Obama is deliberately undermining America. It wasn’t all that different from Donald Trump’s claim that Mr. Obama founded ISIS. And let’s also not forget that Jeb Bush … began his campaign with the ludicrous assertion that his policies would double the American economy’s growth rate.

Which brings me to my main subject: Mrs. Clinton’s economic vision… It’s very much a center-left vision: incremental but fairly large increases in high-income tax rates, further tightening of financial regulation, further strengthening of the social safety net.

It’s also a vision notable for its lack of outlandish assumptions. Unlike just about everyone on the Republican side, she isn’t justifying her proposals with claims that they would cause a radical quickening of the U.S. economy. …

So here’s my question: Is the modesty of the Clinton economic agenda too much of a good thing? Should accelerating U.S. economic growth be a bigger priority? …

After all, what do we actually know how to do when it comes to economic policy? …

According to the budget office, potential growth was pretty stable from 1970 to 2000, with nothing either Ronald Reagan or Bill Clinton did making much obvious difference. The subsequent slide began under George W. Bush and continued under Mr. Obama. This history suggests no easy way to change the trend. …

Now, I’m not saying that we shouldn’t try. …

But … I don’t think enough people appreciate the courage involved in focusing on things we actually know how to do, as opposed to happy talk about wondrous growth. …

So it’s actually quite brave to say: “Here are the things I want to do, and here is how I’ll pay for them. Sorry, some of you will have to pay higher taxes.” Wouldn’t it be great if that kind of policy honesty became the norm?