Tag Archives : Keynesian
Another Example of Editorial-Page Fiction at the New York Times
Are there any fact checkers at the New York Times? Since they’ve allowed some glaring mistakes by Paul Krugman (see here and here), I guess the answer is no. But some mistakes are worse than others. Consider a recent column by David Stuckler of Oxford and Sanjay Basu of Stanford. Entitled “How Austerity Kills,” it […]
read more...Where Are the European Spending Cuts?
Paul Krugman recently tried to declare victory for Keynesian economics over so-called austerity, but all he really accomplished was to show that tax-financed government spending is bad for prosperity. More specifically, he presented a decent case against the European-IMF version of “austerity,” which has produced big tax increases. But what happens if nations adopt the […]
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Challenge for Keynesian Anti-Sequester Hysterics: Why Did America’s Economy Boom When Reagan and Clinton Reduced the Burden of Spending?
Triggered by an appearance on Canadian TV, I asked yesterday why we should believe anti-sequester Keynesians. They want us to think that a very modest reduction in the growth of government spending will hurt the economy, yet Canada enjoyed rapid growth in the mid-1990s during a period of substantial budget restraint. I make a similar […]
read more...Challenge for Keynesian Anti-Sequester Hysterics: Why Did Canada’s Economy Boom When the Burden of Spending Was Sharply Reduced?
In this appearance on Canadian TV, I debunk anti-sequester hysteria, pointing out that “automatic budget cuts” merely restrain government so that it grows $2.4 trillion over the next 10 years rather than $2.5 trillion. I also point out that we shouldn’t worry about government employees getting a slight haircut since federal bureaucrats are overcompensated. Moreover, […]
read more...Don’t Trust Economists, Part II
Back in 2010, I shared a remarkable graph comparing the predictions of economists to what actually happened. Not surprisingly, the two lines don’t exactly overlap, which explains the old joke that economists have correctly predicted nine of the last five recessions. It’s not that economists are totally useless. It’s just that they don’t do a […]
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The Basket Case Sometimes Known as Japan
Good fiscal policy doesn’t require heavy lifting. Governments simply need to limit the burden of government spending. The key variable is making sure spending doesn’t consume ever-larger shares of economic output. In other words, follow Mitchell’s Golden Rule. It’s possible for a nation to have a large public sector and be fiscally stable. Growth won’t […]
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An Invaluable Economic History Lesson from Thomas Sowell: Politicians Should Only “Do Something” If that Means Doing Less
The great Ronald Reagan famously said (and I am paraphrasing, since I do not remember the exact phrase) that the most dangerous words in the English language were “I am from Washington and I am here to help you.” Those are very wise words, especially when we think of the damage politicians have done because of […]
read more...A Picture Says a Thousand Words: President Obama’s Dismal Failure on Jobs
If it wasn’t for the fact that so many people are suffering and being seduced into empty lives of government dependency (symbolized by Julia, the world’s most disappointing daughter), I might feel sorry for President Obama. He promised unemployment would never climb above 8 percent if Congress squandered $800 billion on a Keynesian stimulus scheme. […]
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We Don’t Need an Investor-in-Chief
How was anything ever invented before government started “investing” in new technologies? One wonders these things, given the seriousness with which Keynesians seem to believe that if they don’t choose the economic winners and then throw large sums of money at them – other people’s money, of course – then there will be no innovation […]
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