Saturday, December 27, 2008

Actually, it's very simple

Nobel Prize winner Paul Krugman may be a great economist, but as a blogger he needs some work.

On his New York Times blog, making fun of people who don't want a massive federal bailout of cities and states, Krugman said:

"...if you believe that a surge in private spending would raise employment — and even the critics agree on that — it’s very hard to explain why a surge of public spending wouldn’t have the same effect."

Private spending wouldn't be borrowed money that taxpayers have to pay back with interest.

2 comments:

Hempy said...

Krugman's views are more consistent with Hamiltonian economics than are yours.

In Alexander Hamilton's 1791 report to Congress on manufactures, he wrote:

"In countries where there is great private wealth, much may be effected by the voluntary contributions of patriotic individuals; but in a community situated like that of the United States, the public purse must supply the deficiency of private resource. In what can it be so useful, as in prompting and improving the efforts of industry?"

David Adams said...

Hempy,

Are you really refuting an argument with a 217 year old quote that describes the United States as one without great private wealth?

Interesting...