Rolling Thunder Book Club #1
"Arguing with Zombies: Economics, Politics, and the Fight for a Better Future" by Paul Krugman
Welcome, my fair readers, to a wonderful new post type from Rolling Thunder. This year, I will be running a book club. Each month, I will read a book that I believe will add value to my investing decisions and/or broaden my worldview. I invite you to join me and read alongside me—or feel free to live vicariously through me by reading my updates as I explore these books. The plan is simple: one book per month. Each Friday, I will share an update about the quarter of the book I read, and on the first Friday of each month, I will summarize the previous month's book and reveal the next one.
This month, I had penciled in a book by Paul Krugman. Over the past few years, his pieces in The New York Times have consistently offered unique insights into the economic world. His detailed and thoughtful analysis helped me feel confident when others were uncertain—whether during COVID concerns, recession fears, or inflation woes. Thanks to his work, I often found opportunities to be bold when others were cautious, enabling many early positions that have delivered returns of 132%-318%, as of Wednesday’s scoreboard update. I considered his “wonking out” pieces my North Star for investment planning.
A few weeks ago, Krugman published his final piece in The New York Times. For me, it was a sad moment. I wasn’t sure where I would find similar insights without his presence in the paper. While planning 2025 for Rolling Thunder, I decided to start this book club, and it seemed fitting to read some of Krugman’s works to better understand his worldview and apply past lessons to the present. With that in mind, I’ve chosen Arguing with Zombies: Economics, Politics, and the Fight for a Better Future as my first book.
(On a side note, I learned yesterday that Krugman has started a Substack! You can find it here. It appears he began it in 2021 but kept it largely dormant until retiring from The New York Times last month. I’m thrilled he’s still writing and that I can continue to borrow from his insights. Even better, it seems he’s posting more frequently than he ever did at the Times. Definitely check it out!)
Back to Arguing with Zombies. I haven’t read this book yet, but I’ve read about it. It picks up where one of his earlier books, The Great Unraveling: Losing Our Way in the New Century, leaves off. That book largely focused on pre-2004 George W. Bush policies, while Arguing with Zombies covers topics from 2004 through early 2020. Though it predates COVID, it addresses many subjects relevant to today, particularly with a second Trump term starting. Early books on this list will often consider the second Trump presidency—not as a political statement, but as a lens to examine potential economic and market effects.
The book’s pre-COVID perspective is key. Trump’s first term began with a Republican trifecta, giving him two years of significant legislative power—similar to the current situation. The economy was going well and the choices he made then, should be similar to the choices he makes now. His COVID response, while important, complicates the analysis of his earlier economic policies. This book offers a snapshot of that earlier period, which will be valuable when considering what he might do next.
If you are going to read along with me, I am reading the first quarter of the book over the next week. It is ~420 pages, and the fourth main section stops at page 103, so I will read to that point. This means I will share my thoughts on the first four chapters: “Saving Social Security,” “The Road to Obamacare,” “The Attack on Obamacare,” and “Bubble and Bust.” I will stop before Chapter 5, “Crisis Management.” For week 2, I will cover Chapters 5-9, week 3 will cover Chapters 10-13, and I will finish the book for the first Friday in February. January is a rare month with five Fridays, so there will be one week without a book club update, as I’ve already divided the reading neatly into quarters. I will start a chat thread each week for us to discuss anything further from those sections and explore potential candidates for investments/LEAPs. I hope this is as exciting for you as it is for me!
Happy Reading,
S. Andrew