Count me in

Krugman criticises someone for criticising Keynesian Paul Samuelson:

The scary thing is that there probably are a number of people in this country who believe that advocating Keynesian economics is a crime comparable to being complicit in mass murder.

Paul, count me in.

Reasoning is as follows:

1.  Krugman himself has stated on the NewsHour (PBS) that 10% unemployment is a tragic waste of young lives and many people never recover from such a slump.   Krugman clearly would support the view that deliberately causing the unemployment rate to spike for a sustained period would be “irresponsible”, possibly “criminal”.

2.  If (and admittedly it’s a big “if)” you believe in ABCT, the existence of central banks and their monopoly control over interest rates GUARANTEES a gross misallocation of resources and Depressions.  GUARANTEES this outcome.  It is structurally embedded in the very creation of a govt-supported central bank willing to bail out private banks.

3.  Gross misallocations of resources and Depressions cause unemployment and wasted lives.

4.  Keynesians support BOTH the existence of central banks AND low interest rate policies – the two policies Austrians view as GUARANTEEING ECONOMIC CATASTROPHE.  Krugman himself is the poster-boy of both Japanese zero-interest rates in the late 1990s and the zero-interest rate policies of the US today.  He also (arguably) supported the creation of a housing bubble to “recover” from the post dot.com crash.

5.  Austrians also view government spending as inherently inefficient, as it does not respond to market signals and is financed by coercive taxes, not voluntary market transactions.  They also view govt debt as inherently destructive.

6.  Keynesians such as Krugman have been screaming for increased govt spending to resuscitate the US economy.  It still hasn’t worked, but they keep screaming.  If (and admittedly it’s a big if) you support Austrian views on deficit spending and the inefficiency of govt spending and taxation, then you would have to conclude that Krugman’s prescriptions will result in mass unemployment, a gross misallocation of resources, impoverishment of the general populace, the enrichment of a small number of govt officials and bankers who will parasitically live off coercively collected taxes and interest on govt debt bonds… in other words, it is a recipe for mass suffering.  Which, ironically, is what the US is experiencing right now, despite following Paul Krugman’s policy prescriptions to the letter for over a decade.

If you believe Austrian economics, advocating Keynesian economics is a deliberate crime to impoverish the working people, destroy the economy, irreparably destroy the capital structure, indebt the populace for generations and cause suffering to a degree unknown in modern times EXCEPT during war.

QED.

Count me in.  Keynesians murder economies.  Japan, the UK and the US are Exhibit A, B, and C in my case against Paul Krugman.

Krugman seems almost proud of his achievements.  Perhaps he revels in human suffering?  I can think of no other explanation for his glib dismissal of Austrian economics and his continued support of failed policies that have failed EVERY TIME THEY HAVE BEEN TRIED THROUGHOUT HISTORY.

I welcome any Keynesian to refute my analysis.  Note that this is premised on a belief in the principles of Austrian economics.  If you think this is madness, then of course the conclusions are also mad.  However this is simply begging the question: Is Austrian economics madness?  Krugman (obviously) assumes it is, and has openly stated this.

But what if he is wrong?  Does he then accept he is mass murderer of jobs, of livelihoods, of the Japanese, UK and US economies?  And if he thinks he’s right, where’s the evidence in Japan to say he is?  Does a shadow of doubt ever cross his path that he is wrong and his Keynesian policies have destroyed millions of lives around the world? 

It is not so much the madness of his detractors, but the insane masturbatory egotism of the man himself that allows him to spout such accusations in the face of the biggest failure in mainstream economics since in the 1930s.

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