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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (102974)	2/3/2009 5:17:10 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 542199

Tim; Although Krugman and Thoma have made the only rhetorical move left to salvage their disastrous recommendations, their claim is wrong: the normal rules of scarcity do still apply, even in the middle of a depression Interesting article Tim, thanks for sharing. In time, Krugman will be shown to be a fruitcake. It will be the time honored economics of the Austrian School that will be proven to be correct - IMHO. If the government wants the economy to recover as quickly as possible, the solution is simple: cut spending, cut taxes, stop inflating the money supply, and stop changing the rules every three days. But this solution won't be adopted, since it doesn't allow the politicians to pose as generous saviors. I do not agree with all in the article though - for instance, Murphy doesn't make a good case as to how we get bridges built without government spending. How would private industry build the Bonnivielle dam for instance? They couldn't and wouldn't. But in general terms I agree with the article as it is much closer to reality than what Krugman proposes. One big complaint I have with Krugman is that he seems to think that any man is as efficient as the next - when in reality of course that is not the case. So under Krugman we get an increasingly less efficient economic world - rather than flush out inefficiencies as suggested .......er demanded by the Austrian School believers. steve