Paul Krugman: Giving Credence to the Wrong People

Dean Baker, co-director of the Center for Economic and Policy Research, is feeling dyspeptic — not for the first time — over a Washington Post article published earlier this month suggesting that slow growth is the new normal in the United States. In a recent online post, Mr. Baker wondered why we should listen to people who have been wrong about everything so far. But it’s actually worse than he said.

In the Washington Post article, the case for slow growth forever is mainly made by quoting Kevin Warsh, a former governor at the Federal Reserve.