Log in

No account? Create an account

Previous Entry | Next Entry

Keynesianism is a religion.

  • Dec. 9th, 2010 at 7:50 PM

Krugman & Hard Money: Smell the Disdain

While the comments about gold shouldn’t come as too big of a surprise, we are once again reminded of the beauty of defending Keynesian economics – you can always say that some outrageous (and quite impossible) amount of deficit spending and/or money printing is required to heal the economy and, then, after that amount is not offered up, you can say that policymakers just didn’t try hard enough.

Unfalsifiable, just like any other religion.


gwendally wrote:
Dec. 10th, 2010 02:53 am (UTC)
Krugman says it was never tried because politicians didn't pull back stimulus money in good times.

What he fails to understand is that it is not possible for politicians in a democratic nation with a fiat currency to impose austerity measures in any way, shape or form. It's not for lack of knowledge, it's because it simply cannot be done in the real world.

This is like saying that Communism didn't work because they never had a scenario where everyone gave their all for the common good. Um... yeah. That's because that scenario doesn't exist outside of a very brief and shallow gedanken experiment.