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Source link: http://archive.mises.org/10481/krugman-on-bad-actors/

Krugman on Bad Actors

August 18, 2009 by

In a recent New York Times column, Paul Krugman lamented our society’s lavish rewards for bad actors. No, he wasn’t criticizing the original cast of Star Trek. Rather, Krugman was bemoaning the hefty earnings that accrue to financial executives. Unfortunately, Krugman’s critique is riddled with irrelevant paper citations and internal contradictions. The shocking abuses in today’s financial markets would end immediately, if only the government would get out of the sector entirely. FULL ARTICLE

{ 12 comments }

Mark K August 18, 2009 at 8:34 am

Krugman is your typical marxist. Profits are evil, government is good. Probably was a red-diaper baby. Keynes is just window dressing for statism.

Government steals trillions from taxpayers–no problem. Some executive is highly compensated, big problem. Marxism may well be at its root nothing more than the politics of envy, but even if there is more to it, the politics of envy is what powers it.

Rafael Garcia August 18, 2009 at 9:24 am

I would just like to offer a little clarification. HFT is perfectly legit, as is Goldman making a profit from it. If the activity is profitable, than Goldman makes more revenue from the spread between buyers and sellers in these markets than it spends on the capital (computers, etc.) to engage in the trading. As in any other market, profits indicate social benefit.

Ben August 18, 2009 at 10:06 am

Krugman openly advocated for bailouts of Wall St. Now he’s complaining about it.

Franklin Harris August 18, 2009 at 10:47 am

“No, he wasn’t criticizing the original cast of Star Trek.”

Shatner has won two Emmys, I’ll have you know!

Sean W. Malone August 18, 2009 at 12:37 pm

Bob Murphy – Reading inane Paul Krugman columns so I don’t have to since 2008.

Toby August 18, 2009 at 1:10 pm

There’s a nice diagram explaining High Frequency Trading. Maybe Kruggy should read that, too:

http://www.bearishnews.com/wp-content/uploads/2009/07/flash-orders-diagram.jpg

Daniel August 18, 2009 at 5:41 pm

The government must ban the thinking machines replace them with mentats

kmeisthax August 18, 2009 at 10:49 pm

SO… HFT is just a way of finding slightly better prices without breaking a government regulation on delaying orders? All the articles I saw about it made it out to be some sort of investment fraud that was going to ruin our retirement funds or something like that.

Jaycephus August 19, 2009 at 12:24 am

Franklin:
“”No, he wasn’t criticizing the original cast of Star Trek.”

Shatner has won two Emmys, I’ll have you know!”

And Krugman won a Nobel.

There’s more than one way to look at that. ;)

I’ll choose to look at it as there’s some chance that Krugman can win an Emmy, too. He’s been playing an economist on TV.

Jaycephus August 19, 2009 at 12:33 am

“The government must ban the thinking machines, replace them with mentats.”

Isn’t Krugman Pinch’s pet mentat, heart-plug and all? I think the beard hides the sapho juice.

Ned Netterville August 19, 2009 at 11:48 pm

Paul Krugman is an epigone of Keynes, who was a sociopath. Keynes admired the “science” of eugenics. He believed that an authoritarian regime would find it easier to implement the full-employment policies recommended in his GENERAL THEORY OF EMPLOYMENT, INTEREST AND MONEY, and so he stated in his introduction to the German edition of that contorted essay, which was published early in Hitler’s Third Reich. The Third Reich proceeded to implement more of Keynes’ full-employment policies than any other government to date.

Hitler devised some novel twists on Keynes’ concept of the government “investing” to “create” jobs by establishing the Gestapo for loyal Aryans and concentration (labor) camps for those genetically unsuited for routine employment. What with mandatory military service for workers as young as 14 years of age, Hitler was able to achieve for the people of Germany the fullest of Keynesian full employment ever realized by any nation.

The full employment during Hitler’s Third Reich was enough to warm the cockles of a Keynesian’s heart. If Krugman was a German during the Third Reich, we can safely presume he would have approved of Hitler’s invasions of Germany’s neighbors, for Krugman has described World War II as an “economic stimulus,” and the only one sufficient in magnitude to end the Great Depression that preceded it. (For references and authorities to support these statements, see the essay, BARACK ALMIGHTY, available at http://www.jesus-on-taxes.com)

Krugman and his ilk among putative economists are more dangerous than ordinary talking heads because their “spend-the-nation-to-prosperity” policies have been embraced by the Bush and Obama administrations and by the dems and reps in Congress. The very best refutations of Krugman’s nonsense are Robert Murphy’s articles published by the Mises Institute. My guess is Krugman does read Murphy’s rejoinders, and it must appear to Krugman that a bulldog has firmly grasped his pant leg, and is constantly tripping him up.

Sick ‘em!

john kennedy August 20, 2009 at 12:38 am

Krugman was not so critical of big salaries when he was an advisor to Enron.

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