Paul Krugman looks at the first-quarter growth results from some developed economies and notes Japan's strong performance due to the post earthquake and tsunami reconstruction. He then compares it to Italy's dismal results due to austerity measures (which, as I've pointed out here, consists almost exclusively of tax increases, not cuts in spending).
Krugman then says that "there seems to be some kind of lesson here about macroeconomics, but I can't quite put my finger on it…" Is he really saying that what Europe needs to grow again is a massive earthquake and tsunami? Or maybe a nuclear accident? After all, Krugman once wrote that Fukushima's "nuclear catastrophe could end up being expansionary" for the economy.
Speaking of economic lessons, has the good professor never heard of "the broken window fallacy"?
Wow, he's really doing a fine job reminding us why American economics in a increasingly/socialist republic, leaning toward toward the dangerous over-interventionist governments that have been historical epic failures is not the direction societies that thrive ever take. Economic theory, market theories; Paul Krugman skipped those classes in his degree studies. Oh, wait, it's an honorary degree?
Economics in the Crisis - Paul Krugman - The New York Times
He's definitely no more than a statist tool, discarding real market principles for moral hazard. These ideas are pretty easy, it just takes looking at it without the window dressing. I would hope that the general population has the same capacity to see our situation for what it is.
No comments:
Post a Comment