When you don't know what causes something, you start to think it was deserved
by phil on Sunday Feb 28, 2010 2:12 PM
More from Paul Krugman's profile in the New Yorker:
Then came the Depression, and the one question that people wanted economists to answer was "What should we do?" "The institutionalists said, 'Well, it's very deep, it's complex, I mean, you just talk about what happened in 1890,' " Krugman says. "Keynesian economics, which was coming out of the model-based tradition, even if it was pretty loose-jointed by modern standards, basically said, 'Push this button.' " Push this button--print more money, spend more money--and the button-pushing worked. Push-button economics was not only satisfying to someone of Krugman's intellectual temperament; it was also, he realized later, politically important. Thinking about economic situations as infinitely complex, with any number of causes going back into the distant past, tended to induce a kind of fatalism: if the origins of a crisis were deeply entangled in a country's culture, then maybe the crisis was inevitable, perhaps insoluble--even deserved.