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Nobel-prize-winning economist Paul Krugman criticized House Minority Leader Kevin McCarthy in his column for the New York Times this week. Krugman called McCarthy out for making a claim about the US economy under President Joe Biden.
In his piece for the New York Times, Krugman criticized McCarthy over his recent attempt to attack the US leader through the country’s gas prices. Krugman cited McCarthy’s tweet, claiming that the rising gas prices are because of Biden rather than Russian dictator Vladimir Putin. Krugman said McCarthy’s claim was “transparently dishonest.”
“You could have said the same thing about him just about any other week over the past few years. But this particular statement seemed important because it involved a lie that has a direct bearing on how America will respond to Russia’s invasion of Ukraine,” Krugman wrote.
Krugman explained that the rising gas prices are due to the ongoing conflict in Ukraine and the economic sanctions imposed on Russia by the US and many other countries. Krugman then argued why the Federal Reserve should not “overreact” by increasing interest rates.
Krugman noted that some of the pressure the Federal Reserve would face due to “overreacting” would be coming from people like McCarthy who insist that inflation rates and rising gas prices are because of domestic policy choices.
“Some of this pressure will be coming from people like McCarthy, who insist in the teeth of the facts that high gasoline prices are being caused by domestic policy choices. Some of it will be coming from permahawks, in whose minds we’re always about to see a reboot of ‘That 70’s Show’,” Krugman added.
Previously, McCarthy had a rare moment of disagreement with former President Donald Trump regarding the Russian invasion of Ukraine. Many Trump loyalists who are still in office have openly expressed support for the invasion, and the former president himself has often praised the Russian dictator, calling Putin “savvy” and a “genius.”
Speaking to reporters, McCarthy said that there is nothing “genius” or “savvy” about Putin and his desire to invade Ukraine, with the numerous sanctions imposed on Russia as a response. The House Minority Leader added that the Russian leader is “evil” and a “dictator.”
