tag:blogger.com,1999:blog-286599265273958850.post26451292404588972..comments2023-10-31T07:21:09.792-04:00Comments on William L. Anderson: Has Paul Krugman Become an Austrian? Not Quite….William L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-286599265273958850.post-10497758650764636392009-09-07T17:59:21.741-04:002009-09-07T17:59:21.741-04:00WLA:
Krugman has a piece in the NYT today. Im opi...WLA:<br />Krugman has a piece in the NYT today. Im opinion, it's complete junk.Independent Accountanthttps://www.blogger.com/profile/07800220849565219709noreply@blogger.comtag:blogger.com,1999:blog-286599265273958850.post-316614031416825552009-07-18T11:06:26.628-04:002009-07-18T11:06:26.628-04:00I have managed to post TWO comments on two separat...I have managed to post TWO comments on two separate Krugman NYT blog entries this week:<br /><br />In response to Krugman on the 1970s:<br /><br />"Mr. Krugman has things backwards. There were plenty of reasons why the 1970s demonstrated the perniciousness of Keynesian taxing, spending, borrowing and money dilution. The problem is not that Keynesianism was overthrown, but that it was not. Except for the tax rate cuts of the 1980s and Volker’s rate hikes, taxing, spending, borrowing and money dilution have been carried on relentlessly ever since. We are in the mess we are in due to listening to the likes of Krugman and Keynes, not because we haven’t."<br /><br />http://tinyurl.com/mqq348<br /><br />Regarding "Deficits Saved the World":<br /><br />There is no evidentiary or logical basis for Krugman’s claim. Consider the 1920-1922 depression. Between the second quarter of 1920 to the third quarter of 1921, wholesale prices fell 44%. Factory employment and industrial production fell 30%. The Fed raised the discount rate from 4% to 7% and then back to 4%. The Harding government did basically nothing in the way of so-called Keynesian stimulus. Harding specifically and intentionally did nothing to interfere with falling wages and prices. Further, Federal spending declined from $6.3 billion in 1920 to $5 billion in 1921 and $3.3 billion in 1922. Tax rates, meanwhile, were slashed—for every income group. And over the course of the 1920s, the national debt was reduced by one third. The budget was in surplus EACH YEAR beginning in 1920. The crisis was over quickly. Thomas Woods has an interesting article on this here:<br /><br />http://amconmag.com/article/2009/may/04/00024/<br /><br />Further, Federal spending was slashed by 2/3 from 1945 to 1948 following WWII. What ensued was the first return to prosperity since 1929.<br /><br />There is no evidentiary, historical or logical basis to expect Keynesian “stimulus”, including deficits, to produce anything other than misery, poverty and economic dislocation<br /><br />http://tinyurl.com/nenb8aBob Roddisnoreply@blogger.com