Thursday, May 16, 2013

Best Critique OF Krugman You Will See Today

I make it no mystery that I lean towards Austrian school of economics. Maybe you will have also realized that I have many issues in the Keynesian school of thought. So it should be no surprise that I find much of what Paul Krugman says as just pure lunacy, as he is one of the most outspoken champions of the Keynesians. I think this is why I liked this critique of the Krugman and Keynesians I read at the Mises blog...

Line of the day, from Michael Kinsley: “Krugman sometimes writes as if, right or wrong, his view is the courageous one, held by folks willing to stand up to the plutocrats and their lackies. But his message to all classes is: party on.”
I also like the way Luigi Zingales put it in 2009:
Keynesianism has conquered the hearts and minds of politicians and ordinary people alike because it provides a theoretical justification for irresponsible behavior. Medical science has established that one or two glasses of wine per day are good for your long-term health, but no doctor would recommend a recovering alcoholic to follow this prescription. Unfortunately, Keynesian economists do exactly this. They tell politicians, who are addicted to spending our money, that government expenditures are good. And they tell consumers, who are affected by severe spending problems, that consuming is good, while saving is bad. In medicine, such behaviour would get you expelled from the medical profession; in economics, it gives you a job in Washington.
See also my comments here.

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