"Conscience of a Liberal" by Paul Krugman

Paul Krugman is my guru! Everything he writes makes so much sense to me. He surely gives me confidence that my views at least have the intellectual support of such an esteemed academic.

In his latest book, “The Conscience of a Liberal”, he fleshes out his understanding of being a liberal by analyzing how the Great Compression (the narrowing of the wide economic disparities) during the New Deal was shattered during the last 25-30 years.

He details two basic views of what happened: (1) the technology explosion during the 80’s and beyond required higher education and skills, resulting in higher incomes,
2) policies supported by the Republican Party were implemented with the aim to undo the New Deal. The fact that incomes of 99% of the nation remained relatively unchanged argues against the former theory. The 1% that made huge gains distorted statistics about “average” incomes and wealth. Paul Krugman supports his view that the increased wealth of the 1% resulted from the strength of the Republican Party, supported by vast resources of the very rich, to overtake the political process and push its agenda to reverse the changes that brought about the Great Compression.


We notice these attempts to undermine the programs intended to provide the economic security of the vast majority during the last few decades: privatize Social Security, personal health insurance, elimination of the estate tax, tactics designed to reduce the strength of the unions.

Key points in his analysis include the following:
(1) directing massive resources into institutions , e.g., Think Tanks, that would provide intellectual cover for policies intended to revert from a more welfare-type nation to one supporting individual autonomy,
(2) using underlying racial feelings to gain support of programs that are actually against the self-interest of the majority,
(3) appealing to the fears and prejudices of many, especially those in the South.

His underlying liberal philosophy is that the promotion of democracy requires the elimination of the great economic disparities. The social gains associated with satisfying the needs of the common good are clearly more consistent with the vision of a liberal.

The opportunity to reinstitute policies and programs that will now reverse the damage of the last 25-30 years appears imminent with the 2008 election. In order to be successful, he calls for those running for the President to detail their plans for achieving universal health insurance so that such legislation can be enacted quickly. Supporting this change will require the elimination of the tax reductions that are intended to lapse in 2010. And then, proceed to focus on those initiatives that will progressively contribute to a stronger middle class and the elimination of such high economic disparities.