Demonstrating that he’s probably not a fan of Mitchell’s Golden Rule, Paul Krugman recently asserted that fiscal austerity has failed in the United Kingdom. Citing Keynesian theory and weak economics numbers, he warned about “the austerity doctrine that has dominated…
Daily Analysis
Classic Cartoon on So-Called Stimulus Is Amusing and Economically Accurate
People often ask why I put so much political humor on this site. The easy answer is that I like a good joke. But I also find that some cartoons and jokes do a very good job of helping people understand economics. I’ve always liked this cartoon, for instance, because…
Should the Fiscal Pyromaniacs at the IMF Get another $500 Billion so They Can Advocate Keynesian Spending and Class-Warfare Tax Hikes?
Perhaps the title of this post is a bit unfair since the International Monetary Fund is good on some issues, such as reducing subsidies. And some of the economists at the IMF even produce good research. But I can’t help but get agitated that this behemoth global…
Deconstructing Jonathan Alter’s “Five Myths about Barack Obama” in the Washington Post
The Washington Post is a left-wing newspaper, so I’m never surprised to find examples of biased reporting. Last month, for instance, I made fun of the Post for asserting that Germany was “fiscally conservative.” I also mocked the Post last March, when a reporter…
Just in Case You Needed More Evidence that Obama’s Faux Stimulus Was a Failure
Much of the “stimulus” debate has revolved around macroeconomic issues. Obama squandered about $800 billion, supposedly to “jolt” the economy, but growth has been anemic and the employment situation has been miserable. But it’s equally instructive to look at the…
Notwithstanding Media Coverage of Black Friday, Consumer Spending Does Not Drive Economy
By fighting for freedom in Washington, I’ve condemned myself to a life of frustration and aggravation. One of my many pet peeves is that so many people in DC believe that economic growth depends on consumer spending. Back in the early days of this blog, I wrote the…
DoE Inspector General: Government Too Incompetent to Spend Stimulus
Gregory H. Friedman, Inspector General for the Department of Energy, testified before the House Oversight and Government Reform Committee this morning (Hat-tip: Adam Peshek at the Reason Foundation). Not only was the stimulus based upon bad Keynesian economics, but…
Germany’s Not a Good Role Model…Except When Compared to the Profligate U.S.
Last week in New York City, during my Intelligence Squared debate about stimulus, I pointed out that Germany is doing better than the United States and explained that they largely avoided any Bush/Obama Keynesian spending binges. One of my opponents disagreed and…
Four Reasons Why Keynesian “Stimulus” Does Not Work
Professor Allan Meltzer of Carnegie Mellon University has a must-read column in today’s Wall Street Journal, beginning with what should be an obvious statement. Those who heaped high praise on Keynesian policies have grown silent as government spending has failed to…
Did I Lose, or Are the People of New York City Unworthy?
Folks of a certain age, who watched ABC’s Wide World of Sports, will remember the phrase “the agony of defeat.” Well, that’s what Richard Epstein and I endured Tuesday night at the Intelligence Squared debate in New York City. We were battling against two Keynesians,…