Skip to main content

View Diary: How much longer can the Austerians and their puppets go on with their failed policies and lies? (125 comments)

Comment Preferences

  •  The amazing thing is that Krugman is not (4+ / 0-)
    Recommended by:
    DBunn, MKinTN, melo, dorkenergy

    saying anything controversial, really. His arguments (except for the eurozone/optimal currency area thing) are straight out of an Econ 101 textbook. And it shows: Something like 84% of economists think, like Krugman, that the stimulus has been expansionary (and, by implication, that austerity is contractionary).

    However, I think that the austerians will be able to carry on as they have for a while longer, not because they are correct, but because austerity in the face of economic troubles has a deep-seated cultural bias in its favour: For most of human history, a recession was a supply-side problem (a poor harvest), and not a demand-side failure. Because of this, people are biased towards exactly the wrong policies.

    Iuris praecepta sunt haec: Honeste vivere, alterum non laedere, suum cuique tribuere. - Ulpian, Digestae 1, 3

    by Dauphin on Wed Jan 30, 2013 at 07:01:34 AM PST

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site