Ron Paul Liberty Report
  • Home
  • Archives
  • About

Don't Take Credit For Paul Krugman's Delusions

7/31/2015

 
Picture
By Chris Rossini

Paul Krugman had some interesting words to say about Jeb Bush today:

Politicians who preside over economic booms often develop delusions of competence. You can see this domestically: Jeb Bush imagines that he knows the secrets of economic growth because he happened to be governor when Florida was experiencing a giant housing bubble, and he had the good luck to leave office just before it burst.
Krugman's observation is actually very true. When The Federal Reserve creates an artificial boom with its printing press, politicians who happen to be in office like to take the credit. Whether it be Jeb Bush during the housing bubble, or Bill Clinton during the dot-com bubble, politicians like to capitalize on the Fed-created delusion. They want the public to think that it was their brilliant policies that created the "good times".

The problem is not that Krugman is calling Jeb Bush out on this. The problem is that it's Krugman who's doing the calling out. You see, after the dot-com bust, it was Paul Krugman who wanted another fake boom to replace it. Here's what he wrote in 2002:
To fight this recession the Fed needs…soaring household spending to offset moribund business investment. [So] Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
Krugman, of all people, is in no position to be criticizing Bush for "delusions of competence". It was Paul Krugman himself who was pushing for the "giant housing bubble" in the first place. 

Krugman is in the same boat as Bush! Jeb gets to falsely claim that his policies created economic prosperity in Florida, and Krugman gets to falsely claim that his Keynesian policies are necessary for the U.S. economy to function.

Contrary to both claims, Fed-induced bubbles are not prosperity. They are times of massive malinvestment. What appears to be prosperity is nothing but a dream that doesn't have a happy ending.

After the housing bubble burst, Krugman went on to claim that Ben Bernanke saved the U.S. economy by printing money like The Fed has never done before. We're not too far from waking up from that dream as well.

Hopefully, as a result, we move a step closer to saying goodbye to Paul Krugman's delusions once and for all.

Comments are closed.

    RSS Feed

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015



  • Home
  • Archives
  • About