Bashing Paul Krugman

I’ve been having difficulty coming up with an idea for a post but one can always fall back to bashing Paul Krugman.  While it’s fair game to disagree with someone I prefer not to put him down. I can’t resist this one.  The guy generates so many words he must have a DBS degree.  (The D stands for doctor.)

There are four areas of disagreement.

First, the stimulus and money creation policies he promotes  were what was needed in the 1930s but are probably not right for current circumstances.  Both of these have been tried and appear not to be working.

Second, if the underlying problem is with the resource base, then increasing economic activity is going to make things worse and possibly bring forward the date of a major economic collapse.

My third concern is that even if we have the resources to prepare for an alien invasion, is that really what we want to do with our time and resources. There are so many things to do in arts, music, crafts and social fields that some of us would find more rewarding.  Also I think each individual  should decide for him/herself what to do rather than have to do what some economist decrees.

A fourth concern is that inflation which he also promotes is a form of theft.

On the other hand Krugman does have some uses.  He gives us something to think about and he has helped me come up with a post for this weblog.

 

If you liked this post your are invited to comment, press the like button and/or click  one of the share buttons. If you disagree you are invited to say why in a comment.  While I like the idea of sharing this platform, my personality is such that I don’t reply to many comments.

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One Response

  1. What most commentators (and many econoists) have still not realised is that the US is in a DEPRESSION, not a recesion. They are technically different. One is just not a worse one of the other.

    The relevant definition of a Depression is that the conomy will not recover unless there is massive stimulus. So we will be in this Depression, not a recession, ten yers from now. Recessions recover ‘naturally’ after 18 months or so, after interest rates have fallen.

    Reducing interst rates, as the Fed has tried, will NOT improve the economy. We are in a ‘liquidity trap’. Keynes is not taught nowadays, and few people understand his policies. The US government certainly has not tried a massive stimulus – borrowing undreds of billions (forget the deficit) and spending on infrastructure.

    Well, all I can say, you will be a big supporter of Krugman.

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