‘Financially Illiterate’? Social Media Erupts as Paul Krugman Leaves New York Times

This week, the American economist and Nobel laureate Paul Krugman officially stepped away from his role as an opinion columnist for the New York Times. Social media buzzed with criticism, as many voiced sharp opinions about his track record, accusing him of repeatedly missing the mark on economic predictions.

From Fax Machine to Bitcoin ‘Bubble’: Krugman’s Missteps Highlighted in NYT Retirement

On Dec. 6, 2024, the New York Times shared a post on X announcing the departure of economist Paul Krugman. “After nearly 25 years as an Opinion columnist, Paul Krugman is retiring from The Times,” the post read. The reactions to his retirement, however, were anything but kind—critics wasted no time branding him as one of the least effective economists of our era.

Krugman, a well-known American economist, has made a name for himself with his contributions to international trade theory, economic geography, and macroeconomics. Despite his influence, he often finds himself in the crosshairs of analysts who argue that his shifting viewpoints and overtly political stance hurt his credibility. Detractors claim that his advocacy for interventionist policies tends to sidestep potential long-term downsides, such as mounting debt or disruptions to market dynamics.

Krugman laughed and made fun of bitcoin (BTC) at a round table discussion in 2015. The economist said it is “purely self-fulfilling prophesy” in regards to BTC at the time.

In the New York Times X thread, this opinion of Krugman was widespread. “A shill who spent his life justifying to the public why the mass murdering government needs a domestic imperialist economic regime to control them retires, yay,” one X user wrote. “Good riddance,” bitcoin supporter Wayne Vaughan stated. It’s not just a matter of Krugman being off the mark occasionally—commentators argue that he has an uncanny knack for being consistently off the mark.

Take, for example, Krugman’s infamous take on the internet back in 1998—a stance that continues to draw both attention and ridicule. He famously downplayed the internet’s economic potential, likening its significance to that of the fax machine. Time, however, proved him wrong, as the internet became a powerhouse of economic growth and innovation. Beyond that, Krugman misjudged interest rates, fiscal policy, and inflation—which he claimed would be short-lived—and dismissed globalization’s potential to seriously affect U.S. wages.

“Dude is a first class a-hole and was wrong more often than right. Good riddance,” an X user bluntly shared on Friday. Another chimed in, “The dude is financially illiterate.” The critiques didn’t stop there. “Very few economists truly understand the real world the rest of us live in,” wrote another commenter on X. “Some do, and they are special.” The post continued:

Paul Krugman has lived in an alternative universe, [a] fantasy world for most of his adult life. Almost nothing he says is based on our lived experience except ‘I quit.’

Krugman has also been a vocal critic of bitcoin (BTC), frequently casting doubt on its utility and value. During a 2015 roundtable, he dismissed bitcoin as a “bubble” driven by “libertarian ideology,” suggesting it was a solution searching for a problem with no meaningful economic relevance.

He’s often compared bitcoin and crypto assets to Ponzi schemes. Yet, despite his skepticism, bitcoin and the broader crypto economy have steadily gained traction, increasingly challenging his arguments about their supposed lack of utility and importance. Krugman’s track record of being wrong—including his takes on bitcoin and the internet—has left many wondering why he remains such a favorite among Democrats.

“Krugman had so many bad takes over the decades, not just his 180 degree miss on the internet, but many economic things. He was a stalwart in giving official economic cover to some of the worst ideas on the left,” another person remarked on Friday.

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