Paul Krugman said Labour was "weak". Source: Getty Images
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Mehdi Hasan interviews Paul Krugman: Labour is "weak" in its opposition to cuts

The Nobel economist is scathing in his criticism of the two Eds.

In person, Paul Krugman is short, shy and quiet. But the Nobel Prize-winning economist and New York Times columnist isn’t afraid to hurl verbal hand grenades at his opponents – as I discovered to my amusement when I caught up with him on a visit to London this past week.

Krugman, who was in town to plug his new book End This Depression Now!, struggled to find anything positive to say about the EU’s leaders, President Barack Obama or the Israeli government. But it was the Princeton University professor’s comments about the Labour Party that stood out for me.

He was scathingly critical of Labour’s “weak” opposition to the Conservative-led coalition’s spending cuts. “Certainly, economically, they’re too cautious,” he said, dismissing the party’s plan to halve the deficit over four years.

His comments will make uneasy reading for the two Eds, Balls and Miliband, who are petrified of being tagged as “deficit deniers” by their right-wing critics. Under pressure from the Blairites inside the party, they have been trying to find the right balance between opposing the coalition’s austerity measures in the short run and supporting deficit reduction and cuts in the long run.

Krugman seemed to have little sympathy for them: Labour’s position on austerity, he told me, “has been a kind of ‘We’re like them but only less so’. And it does come across as fairly weak.” He continued: “It does seem odd that when you ask me: ‘Where is the really effective intellectual opposition coming from?’, it seems to be think-tank people and journalists. The opposition is Martin Wolf [of the Financial Times], Jonathan Portes [of the National Institute for Economic and Social Research], Simon Wren-Lewis [of Oxford University], David Blanchflower [of the New Statesman] and me.”

That, he said, is a “sad commentary” on the state of Her Majesty’s Opposition.

To add insult to injury, the Nobel laureate had high praise and much sympathy for Miliband’s predecessor, the much-maligned Gordon Brown. “He has been treated unfairly by history,” he said. “Yes, [Brown] made mistakes, but he is a much better guy than his current reputation suggests.”

I asked Krugman if he stood by his now-famous October 2008 description of the former prime minister as the leader who “saved the world financial system”. The economist nodded furiously. “Yes, he took the lead on the financial rescue which did save the world,” he told me. Without [Brown’s leadership], things would have been much, much worse. He was a smart guy.”

Krugman, a long-standing critic of the European single currency, was also keen to remind me how it was Brown who, as chancellor of the exchequer during the late 1990s, “kept Britain out of the euro. It would be a catastrophe here if Britain were in the euro.”

My full interview with the professor will appear in the New Statesman later this year.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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A man who accused a gay donkey of trying to rape his horse runs for Ukip leader

Another high-quality candidate.

John Rees-Evans, the Ukip candidate for Cardiff South and Penarth in the 2015 general election, is the latest to enter the Ukip leadership contest. And just as your mole thought bigotbait factory Breitbart’s Raheem Kassam was the fruitiest character in the running.

Rees-Evans, a Wales-based Ukipper who used to be in the army, is best-known for a bizarre story he told protesters outside his office in 2014. In which he accused a gay donkey of trying to rape his horse.

Having been asked to respond to a comment by a fellow party member – Julia Gasper – claiming “some homosexuals prefer sex with animals”, Rees-Evans replied:

“Actually, I’ve witnessed that. Yes! I was personally quite amazed. I’ve got a horse and it was there in the field. My horse is a stallion, right. And a donkey came up, which was male, and I’m afraid tried to rape my horse . . .

“So in this case, it’s obviously correct because the homosexual donkey tried to with an animal. But I don’t think that’s what it meant, it’s just a bizarre coincidence.”

Since making his bid for Ukip’s leadership, Rees-Evans has had to take back his controversial claim about the gay donkey on the BBC’s Daily Politics.

He said:

“It was a bit of playful banter with a mischievous activist, OK? . . . I concede it was a mistake to be playful with an activist in the street. The point is I’m not a politician. The guy was just asking me questions in the street. It was an error of judgement. I was very early coming into politics and I’m sorry if I offended anyone by doing that but please can we move on?”


Rees-Evans also made headlines by telling VICE that he persuaded IKEA staff to let him take a gun into a branch of IKEA in Bulgaria last year to protect him in the event of a terrorist siege.

Your mole thinks Nigel Farage is beginning to look like Abraham Lincoln.

I'm a mole, innit.