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Source link: http://archive.mises.org/10238/krugmans-rearguard-apologists/

Krugman’s Rearguard Apologists

July 7, 2009 by

As most readers will know, a collection of damning quotes has surfaced recently, exposing Paul Krugman, the doyen of the economic Left, as having been completely backward on the most material economic event in our generation: the housing bubble. My recent article on the subject, “Krugman’s Intellectual Waterloo,” has elicited some pretty heated rearguard apologetics. FULL ARTICLE BY LILBURNE

{ 56 comments }

mikey July 8, 2009 at 4:52 pm

Keynes did not understand capital accumulation (and the attendant rise in the standard of living) and neither
does Krugman.
To them, people need to be “stimulated” into taking purposeful action to get the material things they want
out of life, by some sort of fluff money a bureaucrat
creates with his tongue.
There is not a shred of evidence for this.
Austrian econ is the only school that does not hold out the promise of something for nothing.That is why it is a ticket to nowhere if you are trying for a career in government or in academia.(Greenspan understood this).
Most Americans are no longer interested in freedom and opportunity.They want to be told they can have things without paying for them, and lapdogs like Krugman will tell them that they can.
People observe others earning a paycheck and spending it, and all the activity that goes with the process.To them that is desirable, there is no further thought required, it is pointless to wonder what goods if any are being produced, is the project truly feasible or a government subsidized white elephant like Amtrak.

Others, being a bit more literate in econ, claim that continual inflation is neccessary in order to push real wages down, and prevent unemployment.
This is because wages are ‘sticky’ on the way down.
Absent government intervention, this stickiness disappears.

Heather July 8, 2009 at 5:47 pm

Tom, I think the best way to answer the questions you have is to read “America’s Great Depression” by Rothbard. It has an introduction to the Austrian Business Cycle Theory in the front, then it shows how this theory applies to the real world, the 30′s depression. It is available on pdf http://mises.org/rothbard/agd/contents.asp

The questions and statements you have written are truely very basic misconceptions, and I’m sure the commenters are not trying to be condescending when they tell you this. One read of the Austrian Theory in Rothbard’s book should hopefully clear it up for you.

Brian Macker July 9, 2009 at 1:22 am

Tom,

Krugman doesn’t understand money and thinks it’s equivalent to labor dollars. That alone is enough to discredit him entirely.

It was clear in his article also that he was making two predictions. 1) That a housing bubble would be a good thing. 2) That Greenspan couldn’t pull one off. He was wrong on both predictions.

Sam July 9, 2009 at 1:00 pm

Tom,

Put that penis back in your mouth and STFU.

Richie July 10, 2009 at 4:17 pm

Tom is a troll and a plant from the Krugman church.

Richie July 10, 2009 at 4:34 pm

And by the way, any person that quotes “Borat” is obviously a moron.

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