Nobel Prize laureate Paul Krugman in Wijnhaven: 'American men have real problems'
In a packed lecture hall at Wijnhaven, Nobel Prize winner Paul Krugman succinctly summed up the essence of his argument on Wednesday 17 September: ‘Running a good society is hard’. His lecture held up a mirror to economists and policymakers.
‘A day after Prinsjesdag we have another king here in The Hague, the king of the economy,’ introduced Peter Nijkamp, vice-president of the TRSA (The Regional Science Academy), the American guest. Paul Krugman did not travel to the Netherlands alone; his partner Robin Wells – also an economist, affiliated with Princeton – joined him and would also speak.
The murder of Charlie Kirk
Paul Krugman immediately told the audience he was glad to be away from the ‘crazyness back home’ – the United States. Although he also began with that: the murder of Charlie Kirk.
‘A terrible killing. It does not appear to have been a political murder; it involved a disturbed young man. But people are trying to politicise it. Kirk was found appealing by young white men who felt that modern society did not grant them the status they believed they deserved. The question is why they were so drawn to Kirk. Clearly, something is wrong – what went awry for the men in our society? We are richer than ever before, living standards are higher for most than ever before. And yet, a group of people feels excluded.’
The economic side of America’s 'male problem'
The world-famous economist elaborated on the economic background of the issue. These prime-age men aged 25–54 are unemployed and live in America’s left-behind regions, where unemployment is persistently concentrated. ‘This is not necessarily about money but about having a role. You lack a normal quality of life. That so many men are without work in the left-behind regions is a crucial failure of society, with social and political consequences. And as economic opportunities disappear, discouragement sets in among these men, which fuels political radicalisation.’
‘So what actually happened? The types of jobs offered by the economy have changed. Today we largely live in a knowledge economy, partly based in New York and California. Industrial production has declined, while health care and social assistance (70% female) have increased. We see male-coded jobs disappearing – but that need not be the case. There can, of course, also be male nurses. Some politicians want to turn back the clock and bring back the “men’s jobs”, but that is not going to happen. Yet they are not entirely wrong. Men have lost their sense of dignity, and that weighs more heavily than money. Economists are often accused of focusing solely on GDP, but that is not the case. We must also recognise the sense of meaning in life – and it is precisely there that we are failing.’
Roundtable discussion
After Krugman’s address, it was time for the roundtable discussion moderated by FGGA Dean Koen Caminada. At the table were Robin Wells (Princeton), Olaf van Vliet (Leiden University), Antoaneta Dimitrova (Leiden University) and Rem Korteweg (Clingendael). The central question: how can we deal with growing uncertainty and scarcity in a turbulent global economy, and what does that mean for trade, broad prosperity and our public institutions?
Rem Korteweg emphasised what Krugman later also repeated: there is no simple solution. He suggested looking at the United Kingdom and the consequences of Brexit. Olaf van Vliet spoke about the role of education, noting that (new) skills can help in finding a job. Antoaneta Dimitrova compared the situation to the EU and Eastern Europe, where a similar sense of loss and abandonment exists, adding that we must also address identity and culture – a problem that stands apart.
Robin Wells: more scope for collective bargaining
Robin Wells spoke of an identity problem but indicated that she was somewhat more optimistic than Paul, seeing opportunities in green energy. She also noted that a labour movement like in Europe would be helpful in the US.
‘In the US, service jobs are often seen as “female”, and those very jobs usually lack strong collective bargaining power. With more scope for collective bargaining, wages could rise and these jobs would also become more attractive to men. But this requires an educational process, in which the persistent linkage between certain professions and gender is gradually broken down.’
Following an extensive round of questions from the audience, it was time for some concluding remarks from Caspar van der Berg (UNL) and Martijn Burger (Director EHERO-Erasmus). Martijn: ‘Trust in politics is declining, burn-outs are on the rise. No GDP can compensate for that. Ultimately, it is about lives and dreams.’ Caspar: ‘This is not only an economic challenge but also a societal one. It was an afternoon with ideas that inspire us.’
The final (and summarising) words from Paul: ‘Running a good society is hard; keep on trying and thinking about it.’
FGGA Dean Koen Caminada on Krugman’s lecture
Dean Koen Caminada expressed his pride that such a meeting on fundamental societal issues could take place within the faculty.
‘Krugman pointed out that economics has for decades paid too little attention to the people and regions left behind – people left behind, regions left behind, children left behind. He showed that progress begins with recognising blind spots and taking seriously those who risk falling by the wayside. His lecture provided not only food for thought but also direction for future policy.’
Organisation
The event was organised by Universities of the Netherlands (UNL), EHERO – Erasmus University Rotterdam, The Regional Science Academy, the Scientific Council for Government Policy (WRR) and the Faculty of Governance and Global Affairs of Leiden University.
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Paul Krugman, Robin Wells (r.) en alle sprekers -
Krugman en Karima Kourtit (TRSA) -
Decaan Koen Caminada en de rondetafelgasten -
Caspar van der Berg (l.), Paul Krugman en Robin Wells -
Caspar van der Berg (m.) en Martijn Burger (r.) tijdens de afsluiting -
Antoaneta Dimitrova (r.) -
Paul Krugman -
Olaf van Vliet aan het woord -
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Een vraag uit het publiek -
