Paul Krugman: The Paradox of Flexibility

Bruce Bartlett’s latest has some interesting history from the 1930s that just so happens to bear on my mild chiding of Noah Smith (Smith has an answer that, frankly, I don’t understand — but he’s been such a good guy over time that I’m just going to let this one drop). Anyway, Bartlett focuses largely on the malign influence of Henry Hazlitt, who was among other things writing many editorials for the New York Times, always insisting that the answer to the Great Depression was to encourage big cuts in wages.