Sunday, May 04, 2003

Oh, by the way, yet more self-parodying Luskin fun:

Krugman is forced to go into all that at length with lots of elephant-shit about "liquidity traps" and Fed policy and so on, trying to connect the dots between these textbook theories and his specific claim that the jobs will vanish after exactly one year. But at the end of the day it's all just theory upon guess upon judgment upon conjecture upon approximation. None of which was disclosed in his agitprop arithmetic.

So the claim that those 1.4 million stipulated new jobs will all vanish after just one year is an heroic claim, and an undisclosed one.
Indeed. Unfortunately, as is quickly clear by reading Krugman (or my earlier postings), that isn't what he argued. Anybody who puts the phrase "liquidity trap" in scare quotes is demonstrating deep and abiding ignorance. Even if you don't agree with Keynes, to not even realize where this comes from....

As for the elephant poop, well... think about Dwight Meredith and his "it isn't Krugman who is the liar here" and go from there.

What kills me is that apparently people got investment advice from this guy.

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