Paul Krugman schooled by Spanish “Austrian” Economist Pedro Schwartz
The debate between Austrian and Keynesian economic thought is one of the most important, interesting and yet largely ignored or unknown debates of our time.
To be brief, “Keynesian” economists believe that human beings are smart enough to manage an infinitely complex society, bailouts should be given to the businesses they view as valuable, and governments should be able to spend unlimited sums of money/debt on whatever the government decides.
“It is no coincidence that the century of total war coincided with the century of central banking.” ― Ron Paul
If you’re unfamiliar with the topic or enjoy seeing Keynesians get debunked in public the below video featuring Spanish “Austrian” economist Pedro Schwartz is pure gold.
Complete video here, in a mix of English and Spanish. Start around 1:00 for a good English section with back and forth dialogue between the speakers.
As a final goodie, check out this video of Senior Fellow at The Ludwig von Mises Institute, Mark Thornton outlining the incredible foresight, value and power of Austrian economics vs. the over-promising, under-delivering, fantasy of Keynesian thought.
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#3 written by Linda Burnett 10 months ago
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#5 written by Roumen Semov 10 months ago
Hey, Krugman, interest rates are low because the Federal Reserve is printing like the dollar is running out of style. There’s no inflation because a small fraction of the world wealth is based on cash and the rest of it is based on credit. When you have credit expansion followed by credit deflation the assets based on it have to deflate. If it wasn’t for the Federal Reserve we’d be in the middle of a severe deflation right now, just like what happened during the Great Depression. The Fed has to pump a lot of money to get those assets like real estate to not deflate, and yet they did, but not enough.
Krugman, you are an idiot, waste of air, waste of tha nice suit you have on! -
Your comment proves you either didn’t view the video or you’re just plain dumber than a box of rocks. Let me sum it up for you – the video was just a bunch of liberals stroking each other and whining for government to spend even more of the taxpayer’s money even if they have to lie to the people to do it. If you think that is the answer, the floor is yours to explain the correctness of Keynesian economic model. You know, the one you support yet claim you don’t.
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Man, watching Schwartz tell it to Krugman was AWESOME! Just superb. I wrote a short book comparing Ron Paul’s and Paul Krugman’s records on the housing bubble. Both the quotes from the above image are of course included, along with many others.
http://www.amazon.com/Ron-Paul-vs-Krugman-Keynesian/dp/1470070723
Description
Why do modern economies go through the “business cycle” of booms and busts? What caused the U.S. housing bubble that precipitated the financial crisis? Who correctly predicted it and who should we listen to for wisdom moving forward? Ron Paul vs. Paul Krugman is an examination of the root cause of the crisis as seen through the eyes of two prominent commentators on the subject, each representing a different school of economic thought. Congressman and presidential candidate Ron Paul is today perhaps the most visible proponent of the Austrian school, whose luminaries include Ludwig von Mises and Nobel Prize-winning economist Friedrich A. Hayek. Nobel Prize-winning economist and New York Times columnist Paul Krugman is today perhaps the most well-known voice for the Keynesian school, whose adherents espouse the theories of British economist John Maynard Keynes. A comparative analysis of these two schools of economic thought as applied to the financial crisis and as promulgated through the views of Ron Paul and Paul Krugman is instructive. Whose school offered more explanatory and predictive power? Whose diagnosis and prescriptions have been better suited to deal with the problem? Who should we listen to now?