The crux of Krugman's argument seems to be the extraordinarily misleading statement that "A world awash in information is one in which information has very little market value." Krugman has obviously never studied information theory. Yes, our world is 'awash' with information, but that's not because machines are especially good at producing it. Machines are only good at copying it.
Krugman's error stems from his conflation of the two definitions of information. By one definition, the physical number of bits that the human race has managed to store on hard drives, the amount of information the human race has produced has been increasing exponentially. However, this is not useful information, and not the kind of information that requires any serious education to produce. The other definition is from information theory, where information is defined in terms of randomness: here, information is the total number of bits that you need in order to convey a signal in its most compressed form (i.e. the 'random' component of the signal that can't be derived from other parts of the signal). By this definition, the fact that I copy the 100mb file 'a.mp4' from my desktop to my home folder does not mean that I have produced 100mb of information; I have produced at most 64 bytes of information, since that's the number of bytes it took for me to describe the new state of the world.
As for the rest of the article, Krugman argues (correctly, I believe) that any job which requires the production of information will remain strictly in the domain of human beings. However, he seems to forget that most physical goods are just copies of other physical goods, and therefore contain very little information. The production of those goods can generally be replaced by machines.
However, there is still some insight in what Krugman says, though you have to think a bit to realize it. Krugman is actually arguing that educations are only valuable if they teach you how to produce information, and that an education which only teaches you to parrot facts makes you very much like a computer, and very much replaceable by computers. Hence why he needed to use lawyers in his example. I don't think us computer scientists have much to worry about from this argument.