Doomsday is doomed

by Alan Reynolds - May 12, 2005:

"Whenever the wrong political party controls the White House and Congress, the mainstream media feel compelled to predict some looming economic disaster, and to keep doing so shamelessly and erroneously year after year. The 'business news' thus careens between warning of a hard landing, deflation or stagflation -- any imaginable conjecture that depends on strong words, weak logic and no facts.

New York Times columnist Paul Krugman thus flip-flopped adroitly from warning about deflation and a 'Japanese-style quagmire' in May 2003 to warning about a 'whiff of stagflation' in April 2005. Why? What changed between those dates?"

Hat tip to the Skeptical Optimist for cueing me in to this column.