Krugman claims the downturn of 2008 was caused by inadequate “demand.” The Austrians claim the downturn was more complicated: it involved problems in particular sectors that had been artificially expanded, not a system-wide problem of not enough spending.

Thankfully, we can resolve this dispute swiftly enough — and we do, in this episode.

Krugman Column

“Structural Unemployment: Yes, It Was Humbug” (August 4, 2017)

Contra Columns

“Austrians Can Explain the Boom and the Bust,” by Bob Murphy
“Putting Austrian Business-Cycle Theory to the Test,” by Bob Murphy
“My Reply to Krugman on Austrian Business-Cycle Theory,” by Bob Murphy

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Join Us Aboard the Contra Cruise!

Bob and Tom are hosting the second annual Contra Cruise for fans of Contra Krugman! October 15-22 aboard Royal Caribbean’s Oasis of the Seas, and departing from Port Canaveral. It’s an absolute blast, as you’ll see in the video. Check it out by clicking here.

Need More Episodes?

Tom and Bob have their own podcasts! Check out the Tom Woods Show and the Lara-Murphy Report.