Wednesday, September 28, 2011

Listen to Krugman describe the failure of Keynes

The story of Keynesian economists and the Obama stimulus, as anyone who’s been reading me knows, runs as follows: When information about the planned stimulus began emerging, those of us who took our macro seriously warned, often and strenuously, that it was far short of what was needed — that given what we already knew about the likely depth of the slump, the plan would fill only a fraction of the hole. Worse yet, I in particular argued, the plan would probably be seen as a failure, making another round impossible. Krugman

Keynes is nothing about policy, it is a fake theory so the hysterics can cry 'I told you so'

If Keynes was correct, then the stimulus would be properly sized, any real scientists figure that out? There is no economic theory that requires a bunch of frightened elites screaming to ignore democracy.

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