Monday, January 11, 2010

Mankiw Body Slams Krugman

Healthcare socialist Paul Krugman has written a column today cheerleading Obamacare. Greg Mankiw got into the ring against his arch enemy and wrote:
Here is GDP per capita, adjusted for differences in price levels (PPP), from the IMF, for the United States and the most populous countries in Western Europe:

United States 47,440
United Kingdom 36,358
Germany 35,539
France 34,205
Italy 30,631
Spain 30,589

Readers of today's column by Paul Krugman might find these figures useful to keep in mind.
What Mankiw and Krugman both fail to mention is that most of the innovation in healthcare occurs here in the U.S. Once Obamacare takes hold. the incentive to innovate will be killed off faster than it will take Ezekiel Emanuel to kill off twenty 80 year old women under Obamacare who are "useless" to society.

1 comment:

  1. Krugman, and for that matter Mankiw as well, has no concept of temporal economic allocation problems. Whether this involves the business cycle or the inevitable costs of "Social Democracy", to Krugman if GDP, or some other indicator/metric, is rising then all is well--see I told you so. What if, however, the true costs of some program are hidden within the aggregates? What if the indicator/metric isn't meaningful? What if there are imbalances that will only be revealed after some length of time? Hell, the Soviet Union lasted generations and their GDP potential was high than the West's...just ask Paul Samuelson! Krugman's social democracy experiment will crash against the shores of reality at some point; the only remaining question is who will foot the bill?