The maddening thing about this isn’t simply that people were wrong, it’s that they won’t admit they were wrong. Or if they do, they were wrong for all the right reasons and the people who were right were right for the wrong reasons. At 20% unemployment they’ll be screaming “ALL IS WELL.” And they’ll continue to fail upwards. Also, too, Krugman is a smelly hippie.
When I read that, I thought back to one of the classics by the undisputed Grand Master of this sort of argument, our lady of the Gastric Calculator, who penned this gem after spending years supporting the Iraq War:
Since it failed, the more interesting question is not what did you get right, but what did you get wrong. The people who were right can (and will) rewrite their memories of what they believed to show themselves in the most attractive light; they will come to honestly believe that they were more prescient than they were. This is not some attack on people who were against the war: I was wrong, they were right. But everyone does this with almost everything–indeed, not rewriting memory in this way is so rare that there’s a clinical term for it. We call it “major depression”. They will also quite possibly simply be wrong about how they got it right; correct analysis often operates at a subconscious as well as a conscious level.
Sure, I was wrong, BUT THOSE PEOPLE SMELL LIKE PACHOULI!
There was also this classic with DougJ.