Paul Krugman, Keynesian Idiot

Posted: August 16, 2011 by ShortTimer in Economic freedom, Economics, Government, Liberal Fascists, Music
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Proving once again that Nobel Prizes don’t make you smart,  Paul Krugman recently slammed Texas’ economic decisions, claiming that Obama was responsible for everything good going on in the Lone Star state, and Texas did nothing to increase job growth.

That notion was thoroughly debunked here by Kevin Williamson.

Then there’s this one that Michelle Malkin writes about:

If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. And then if we discovered, oops, we made a mistake, there aren’t any aliens, we’d be better–

Comics Alliance (with several lefty commenters) noted the interesting parallels as well.

Apparently one of the otherwise confused commenters has heard of Hazlitt or Bastiat and the Broken Window Fallacy.

Why not just skip a step and pay some people to break all of the windows in the US?

Hell, even Wikipedia notes it:

One of the central economic critiques of Military Keynesianism is known as the broken window fallacy. Based on a parable by the 19th-century French economist Frédéric Bastiat, it points out that if a person broke a grocer’s window then some people could argue that it was a benefit to the town, as it would provide a job for a glazier, who would then buy more from the tailor and so on. Bastiat pointed out that this is deceptive and illogical reasoning, as it ignores what the grocer would have bought had he not been forced to buy a new window – it ignores, in modern economic terminology – opportunity cost. Military Keynesianism fails to take into account opportunity cost – i.e. what those soldiers would have been doing instead of being soldiers, and also what arms companies could have been making instead of war material.

Another economic critique of military Keynesianism is that military spending comes from general taxation. It requires high levels of taxation to fund military spending, and that taxation must come from the productive sectors in the economy, thus being a long term drag on economic growth (this is one of the central criticisms of Keynesianism in general).

Note that the first quotes in the video are Krugman saying 9/11 was a good thing.

Krugman’s argument fails so hard it’s not even funny.  WWII put an end to the Keynesian New Deal that was busy butchering livestock and plowing acres of farmland so people could starve.  The New Deal was a nationwide price-fixing scam by the government intended to make everything even for everyone.  But, as Reagan said, “the more the plans fail, the more the planners plan”, and the more harm that was done.  The crash in the 1920s was halted by leaving it alone and letting the market recover.  The New Deal, a nationwide meddling scam that prevented farmers from growing wheat for their own farm and ordered them to destroy their own crops.

The New Deal has been taught in schools as what saved the US from the Great Depression, when it was what really caused the Great Depression.  WWII ended the New Deal, and the death of the New Deal spelled the end of the Great Depression.

Krugman is a fool on another level as well.  The Broken Window applies to tanks and bombs and guns as well as the glazier’s handiwork.  Every tank or bomb paid for by taxes is extracted from businesses and personal incomes that could be expanding individuals’ well-being.  Tanks, bombs, and guns are necessary tools, and a military is necessary function of government, but to wish for the expansion of it just to “create jobs”, goes back to the militaristic left and their “moral equivalent of war” – which is just one long sickening paean to statist control of the population.

Of course Krugman wishes for aliens to attack.  It means control.  Funny the very thing the left accuses the right of doing is the very thing the left so gleefully desires to the point of self-parody.  Heck, some people even use extraterrestrial invaders as a punchline mocking actual wars.

Tell all the people that they’re under attack
By man-eating foes from Mars or Iraq
Mobilize outrage, muzzle dissent
Send in the troops, strike to pre-empt

Sadly the leftist bent of most in the music industry is severe enough they can’t see that the left in the US is far more disposed to tyranny – indeed actively wishing for it –  than the right in the US which is by default accused of it (which is probably due to demoralization).

Paul Krugman represents the ruling class, and represents people who think they know what’s best for you.  He’d be happy with a great calamity that will let him swoop in and prevent that “good crisis” from “going to waste”.

Too bad musicians can’t listen to their own songs and advice and apply it to the left as well.  So sad.

KMFDM sucks.

Update:  This has been a consistently popular post.  Every day I’m surprised with the number of people typing “paul krugman is an idiot” into Google.  There have been two follow-ups to this, for those who enjoyed or otherwise found this one enlightening.  More data, more Keynesian idiocy:  Paul Krugman, Keynesian Idiot Part 2, and Paul Krugman, Keynesian Idiot Part 3.

Update 2: This is still a hugely popular post.  There are now three more parts: Paul Krugman, Keynesian Idiot Part 4, Part 5, and Part 6.

I’m sure there will be more, and the easiest way to find them will probably be with the “Keynesianism” tag.  I may add a “Paul Krugman is an Idiot” tag at some point, though.

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  4. Your article loses all credibility after line 2: “claiming that Obama was responsible for everything good going on in the Lone Star state, and Texas did nothing to increase job growth.”

    Krugman claims nothing of the sort: Obama isn’t even mentioned in the article. Not once.

    Neither does he claim that Texas “did nothing to increase job growth.” He just says that job growth in Texas is not as impressive as sometimes claimed, that the jobs cannot all be credited to Perry’s policies, and that the jobs are not as good as sometimes claimed.

    • ShortTimer says:

      Krugman has made such claims elsewhere, when he’s not wishing for alien invasion, or asking the President to lie to force another stimulus. My error for not bothering to link some of those stories and lose your confidence. I suppose I should’ve hotlinked to each of the subsequent statements in the sentence, since you can’t be assumed to read the news.

      To the rest of your claim – Krugman says exactly this: “So what you need to know is that the Texas miracle is a myth, and more broadly that Texan experience offers no useful lessons on how to restore national full employment.”

      Krugman says this with regards to Texas job growth: “So Texas tends, in good years and bad, to have higher job growth than the rest of America. But it needs lots of new jobs just to keep up with its rising population – and as those unemployment comparisons show, recent employment growth has fallen well short of what’s needed.”

      Increased population alone does not create jobs. If that were the case, the middle east and much of africa could simply breed their way out of poverty. Doesn’t work. That’s not how wealth is created. That’s where Krugman totally ignores that conservative fiscal policies are the reasons for immigration to Texas. No state income tax is a good incentive, and a business friendly climate brings in jobs. But that would go against his worldview.

      Krugman: “What Texas shows is that a state offering cheap labor and, less important, weak regulation can attract jobs from other states.”

      Patently false. There is no offering of cheap labor created by the government. A government that doesn’t lord over subjects with strong, iron-fisted, “boot on the neck” regulation is one that allows the American person to prosper in the absence of coercion by the state.

      His further statement : “The point is that arguing from this experience that depressing wages and dismantling regulation in America as a whole would create more jobs – which is, whatever Perry may say, what Perrynomics amounts to in practice – involves a fallacy of composition: Every state can’t lure jobs away from every other state.”

      This is also purified stupidity. The state government doesn’t depress wages (aside from its own employees), and taking the boot stamping on a human face forever off the American citizen does allow for more freedoms that allows for more economic development and entrepreneurship by the individual – often as simple as being able to sell their own wages.

      Consider how the minimum wage causes unemployment, wherein an employer with $5/hour to spend on an employee (after government regulations take another $5 that the employee never sees). If the minimum wage is set at $10/hour, the employer cannot hire anyone. When the employer has $10/hour to spend, she can only hire one employee instead of two. The worker can’t sell his labor at the price he wants to sell it at, and instead remains unemployed. $5/hour is better than $0/hour for the worker, for his resume, and for his working experience and ability to stay in the job market.

      Opening the job market up with reduced interference by the state allows the American citizen to compete in the market depending on what their wages are worth, both to their employer and to the worker.

      Krugman also says, with regards to zoning: “and that this is one area where Texas does in fact do something right.” Haughty, arrogant, Ruling Class talk. Nowhere does he state Texas does anything to create jobs. Which, while he wouldn’t understand it, is actually how Texas creates jobs – the state gets the hell out of the way of the citizen, and provides only what’s outlined in the contract between the people and their government.

      Your comment loses all credibility when you ignore the sum of Krugman’s statements elsewhere and his open embracing of the Broken Window Fallacy. Baby, bathwater, all that.

      Feel free to check out Part 2, wherein Krugman proves it yet again:

      Months later, I’m still surprised at the number of google searches daily for “Paul Krugman is an idiot”.

  5. […] on Jan 2, Nobel Prize winning economist and not just one-time, but twice documented idiot crapped out this column: Debt matters, but not that […]

  6. Jeremy May says:

    Keep of the good work my friend. Kenyesianism will ultimately destroy the dollar, the country, and remake the world–to our disadvantage. Long live freedom, prosperity, and Austrian economics!

  7. […] of course, let’s not forget that Paul Krugman is a Keynesian idiot who wants space aliens to invade so everything can be destroyed an….  Oh, and Krugman: Keynesian idiot part 2, and part 3. Rate this: Share […]

  8. […] blog receives a spike of hits on prior Krugman pieces; notably Paul Krugman, Keynesian Idiot parts One, Two, Three, and Four. We’re coming up on the second anniversary of my piece “Myths of […]

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