Daily Clips: May 2nd, 2016

The diabetic economy: Krugman offers a lovely analogy that likens low interest rates to the “insulin injections that diabetics must take.” These injections, like artificially low interest rates “aren’t part of a normal lifestyle, and may have bad side effects, but they’re necessary to manage the symptoms of a chronic disease.” In the rest of the article, Krugman looks at the disappointing nature of Europe’s economy while finding “ample grounds for hope” in the American economy.

Basic income should be the next big thing:

Now and then a worthy economic proposal comes along that seems as politically unattainable as it is sensible. Then, on closer inspection, you see that it’s more than a policy-wonk’s fantasy. And you wonder whether it could actually prevail.

If you haven’t already read my overview of universal basic income, you can do so here. The idea is extremely enticing. In our lifetimes, it is not hard to imagine basic income being implemented in the US.

Why Hillary Clinton may be doomed to repeat the Obama presidency: A sobering read to start your week. But a necessary one. A couple of weeks ago I wrote about how the Democratic Party is split into two camps: incrementalism or dramatic change. Waldman has a similar view, as he noted “Clinton’s natural inclination toward incrementalism.” This strength/weakness of hers could mean that her presidency looks a lot “like a repeat of Obama’s, except perhaps without the enormous early wins.”

Clinton’s battle plan: Don’t expect Hillary to sit back and take Trump’s insults. She will most likely throw the first punch.