The following are in response to our article, Can Krugman Fix Our Economy?, which appeared last week:
Can Krugman fix our economy? Not in a million years.
Joe French III
First Vice President, Financial Advisor
No, Krugman cannot!
He is a central planning socialist, advocating Keynesian policies which have been proven wrong by von Mises, Hayek, Friedman, Kemp and Reagan. Government is not productive, therefore, all government spending is waste. Less waste would be more productive, so cutting government spending is the smartest thing.
Written to you, by a man who has been told by Mensa that his I.Q. is in the top 3% and who has been an investment broker since 1969.
I know “stuff.”
Well-reasoned, fair, and balanced. Excellent job!
Mark A. Carlton
I agree entirely with your analysis of Krugman's book. As you point out, Krugman's warped worldview arises not from his considerable powers of diagnosis, but from his lack of any apparent power of prescription. It seems as if most saltwater economists are born without a "connectivity gene;" that is, they aren't able to connect some very important dots in the economy.
They refuse to believe, for example, in the Laffer Curve. They believe that government spending, no matter how badly it is allocated, has a multiplier much greater that one. And, as you have documented, they believe that government debt can be greatly increased without damage to the general economy or the currency. In other words, they believe that there will be no reactions to any of their actions.
They cannot be made to see that we live in an information economy, not an industrial one, where the primary resource is brainpower and training, not highly restrictive work rules and rigid seniority. They have no appreciation for financial risk or entrepreneurship. If those who undertake heavy financial risk are successful, they believe that somehow those gains were stolen from "labor," whom they pretend to revere, but honestly believe them to be only knuckle-dragging Neanderthals, who must be forcefully led by strong unions and made to vote through Chicago-style political machines.
And they will not improve. As Herbert Spencer famously said, "There is a principle which is a bar against all information, which is proof against all arguments and which cannot fail to keep a person in everlasting ignorance – that principle is contempt prior to investigation." Further, academia itself, from which Krugman springs, is the victim of its own insularity which predates even the Industrial Revolution.
“In times of drastic change, it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists.” Unknown author
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