Bernanke & Krugman Pose For New Keynesian De-Motivational Poster
Uploaded by PenguinProseMedia on Sep 24, 2011
Bartender Ben keeping the nation liquored-up with cheap money, while his Krugman sidekick sings daily the virtues of fiscal drunkenness!
That’s just beautiful.
It is, furthermore, too late for gradualism. The only solution was set forth by F.A. Hayek, the dean of the Austrian School, in his critique of the similarly disastrous gradualism of the Thatcher regime in Great Britain. The only way out of the current mess is to “slam on the brakes,” to stop the monetary inflation in its tracks.
Then, the inevitable recession will be sharp but short and swift, and the free market, allowed its head, will return to a sound recovery in a remarkably brief time. Only a drastic and credible slamming of the brakes can truly reverse the inflationary expectations of the American public. But wisely the public no longer trusts the Fed or the federal government. For a slamming on of the brakes to be truly credible, there must be a radical surgery on American monetary institutions, a surgery similar in scope to the German creation of the rentenmark which finally ended the runaway inflation of 1923. One important move would be to denationalize the fiat dollar by returning it to be worth a unit of weight of gold. A corollary policy would prohibit the Federal Reserve from lowering reserve requirements or from purchasing any assets ever again;Introduction xxiii better yet, the Federal Reserve System should be abolished, and government at last totally separated from the supply of money.
Now why didn’t I think of that?
Oh and I really love that we raised the debt ceiling. It’s like if you wanna stop tornadoes in tornado alley all you have to do is change what constitutes a tornado. See problem solved.
Or cutting crime by reducing the number of felonies.
A recent article by the best-known Keynesian economist at Yale, Robert Schiller, begins this way:
[A] … fact … about our current economic situation … can no longer be denied: our economy is in desperate need of government stimulus.
Does the rest of the article provide a defense of stimulus? No. Since the need for stimulus is undeniable, there is no need to defend it. No reasonable person would disagree. Right?
Wrong. There is a problem here. Reasonable people do disagree, strongly disagree. Robert Barro, the distinguished Harvard economist, wrote an article about the same time as Schiller’s explaining why neither logic nor evidence supports government stimulus programs. Barro is far from alone, among either economists or the general public.
Does Schiller really think this is undeniable because he says it is undeniable? Are we simply supposed to take this on faith? Are we yahoos if we don’t? Is Robert Barro a yahoo?…
It should be obvious to everyone but the most dedicated adherent of Keynesianism that the stimulus did not accomplish its end. The combination of outright spending by Congress, the desperate schemes to reflate the housing market, the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.
Actually, the reverse has been true. All these efforts have prevented the adjustment of economic forces to the post-boom world. And all the resources that the stimulus consumed were extracted from the private sector, for we must always remember that government has no resources of its own. Everything it does must come from the hides of private producers and the citizenry in general, in the future if not immediately.
Herbet Hoover was a Libertarian.
free markets = business and government working together, including government franchises, limited liability, special favors, subsidies, and aiding in crushing competing firms.
Ron Paul is the equivalent of Herbert…
A professor from one of those ivy-covered North Koreas they call universities? A captain of the guilt industry?
Thanks, but no thanks.
Keynesianisms: Financial, Military, Reconstruction and now “Police State”
It seems incredible to me how few have taken the red pill, and are thus unable to see it (per Subject):
“Military Keynesianism, followed by Reconstruction Keynesianism: the…business of propping up foreign dictators, bombing their countries into rubble, and then ladling out “cost-plus” contracts to politically connected contractors to “reconstruct” those countries.
The miracle of socialized municipal risk management….