Yes, a continent that is on the verge of financial collapse because so much government spending has already occurred in countries such as Greece and Spain, is getting advice from Krugman to spend more.
According to Salon, most are loving it:
Paul Krugman is not a name you’d expect to see plastered onto the sides of Madrid’s buses. But last we heard, his Spanish publisher was planning to use the rolling billboards to sell the Nobel laureate’s new book, “End This Depression Now.” Titled “¡Acabad ya con esta crisis!” in Spanish, it’s already in its fourth printing in a country where more than 50 percent of workers under 25 cannot find a job. They know firsthand why Krugman calls it “economic suicide” to cut public spending massively when the economy is taking a nosedive... the British have put him front and center as the queen floats down the Thames for her diamond jubilee and ordinary blokes wonder why their economy has sunk into a double-dip recession.Of course, since any Krugman-style spending would likely come from Germany, the Germans have a different view:
Germans, who tend to see such cuts as only prudent, are also reading Krugman, often with distaste...I wonder if Europe is aware he basis his entire spending theory on his misunderstanding of what happened in a baby co-op?
Two countries implemented tax cuts and gov't spending cuts after crash of 2008. Sweden and Estonia.
ReplyDeleteMost of the rest implemented Keynesian stimuli and racked up enormous debt while destroying the private market.
The evidence of the Keynesian failure is right there in front of our noses. Where is the media?
You have to love the blind economists that couldn't even see the 2008 crisis and ensuing recession even months before they occurred, and then couldn't see the Greek crisis and its far reaching impact and yet they expect us all to listen to them. Krugman should be run out of Europe along with his buddy Stiglitz. Still remember Stiglitz getting his clocked cleaned by Hendry on Greece in 2010. I watch it from time to time for a good laugh. Love to see Krugman vs Hendry. Hendry would mop the floor with him.
ReplyDeleteLove to see Krugman vs Hendry. Hendry would mop the floor with him.
DeleteAfter the pasting Ron Paul gave him, Krugman wouldn't debate your Aunt Tilly in public now.
Got to love Krugman fleecing the poor Spaniards out of their last Euro's for a book full of economic nonsense.
ReplyDeleteServes them right. Misery loves misery. Stupid attracts stupido.
DeleteSpain's government had to cut because leveraging up on its banks' bad debt exploded its deficit and the higher borrowing costs following from this would've made servicing the new debt on top of the continuously increasing govt expenditure unsustainable.
ReplyDeleteSpaniards, blame your banks, your govt and yourselves for making lousy investments and refusing to take the hit. Krugman the carnival huckster is just going straight for the suckers, as usual.
"...the British have put him front and center as the queen floats down the Thames for her diamond jubilee and ordinary blokes wonder why their economy has sunk into a double-dip recession."
ReplyDeleteI recently compared Krugman to the moving carnival, but didn't expect to see him actually performing the role of a sideshow:
"Bad ideas need a lot of marketing to make their sale possible. ... Naturally, economically bad ideas require heavy dosages of misinformation, deception and misconstruing of facts in order to make their cases convincing to the public. This is so because at the root of an economically bad idea is an attempt to defraud one party at the expense of another in what is a negative sum game where in real terms both parties lose potential gains; and in relative terms the defrauder gains at the expense of the defrauded. Frauds and deceptions have been around in economic politics since time immemorial: their contents generally copied one off the other, repackaged and resold at a different time or place to a new audience of saps--like the moving carnival."
(The rest here: http://www.mises.ca/posts/articles/on-the-existential-threat-of-krugmanomics/)