Krugman’s Folly: Deficits have "saved the world"

Never let it be said that Paul Krugman does not have a sense of humor. Granted, it might be unintentional, but I think all of us can get a good laugh out of his latest blog post entitled: “Deficits saved the world.” According to the Great One, who is responding to a Goldman Sachs analyst:

…government deficits, mainly the result of automatic stabilizers rather than discretionary policy, are the only thing that has saved us from a second Great Depression.

He then goes on to give a Keynesian Cross explanation of this nonsense. I had this today on the FEE webpage to help explain just how crude the Keynesian theory really is. Seeing Krugman’s recent blog, I certainly have not changed my mind on the ridiculousness of Keynesianism-Krugmanism.

Click here to read the entire article…

Technorati Tags: automatic stabilizers, blog, Discretionary Policy, Folly, goldman sachs, Government Deficits, Great, great depression, Keynesian Theory, Laugh, Nonsense, Paul Krugman, Ridiculousness, sense, Sense Of Humor

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2. Paul Krugman’s Identity Crisis
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4. Krugman Touts Austrian Theory! (Sort of)
5. Hangover Theory: How Paul Krugman Has Misconceived Austrian Theory

Tags: automatic stabilizers, blog, Discretionary Policy, Folly, goldman sachs, Government Deficits, Great, great depression, Keynesian Theory, Laugh, Nonsense, Paul Krugman, Ridiculousness, sense, Sense Of Humor

This entry was posted on Wednesday, July 15th, 2009 at 9:59 pm and is filed under Austrian Economics. You can follow any responses to this entry through the RSS 2.0 feed.