Ep. 24 Krugman Attacks Bernie; Bernie’s Supporters Hit Back

26 February 2016     |     Tom Woods     |     12

Paul Krugman criticized Bernie Sanders again last week, arguing that the numbers in his economic proposal don’t work. In particular, he went after economist Gerald Friedman of the University of Massachusetts, arguing that his projected growth figures are far too high to be plausible. Friedman and others fired back, arguing that they were using Krugman’s own models to reach their conclusions! Bob and Tom discuss and enjoy this exchange, and then give the Austrian view of the whole thing.

Krugman Column

Varieties of Voodoo” (February 19, 2016)

Related Links

Lack Of Power Corrupts,” by Paul Krugman
What Would Sanders do? Estimating the Economic Impact of Sanders Programs,” by Gerald Friedman

Contra Columns

Who’s the Bigger Witch Doctor? Gerald Friedman or Paul Krugman?,” by Bob Murphy
Open Letter in Response to CEA by James K. Galbraith
Paul Krugman Really Blows It,” by Barkley Rosser
Krugman and His Gang’s Libeling of Economist Gerald Friedman for Finding That Conventional Models Show That Sanders Plan Could Work,” by Yves Smith

Addendum

The day we recorded, this more detailed analysis (by the Romers) of the Sanders proposals was released.

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Related Episodes (Tom Woods Show)

Ep. 357 The Myth of the Keynesian Multiplier (William J. Boyes)
Ep. 38 Murphy Takes on MMT (Bob Murphy)

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  • Moi

    Man I was laughing alone in my office when I heard the model used in this guys explanation was the same as the one Krugman or OMB uses. Keynesian is the newest religion and hopefully the fastest dying religion soon but that is contingent on the avg guy on the street realizing that the Keynesian are intellectually bankrupt. The info is out there but people with That is if people ever go beyond emotional arguments like everyone deserves a free college education, healthcare, and such because they need to know that the road to hell is paved with good intentions. Bernie supporters know nothing of economics and Joe Rogan just said he would like to see him win on his latest pod. You both should get yourselves on Joe Rogans podcast and he would have you guys because he had Peter Schiff so he is open to new ideas but he and most of the audience just don’t understand classical or much less Austrian econ yet.

    • https://www.facebook.com/david.rogers.hunt David_Rogers_Hunt

      The left has a very simple theory of economics…

      Sharing wealth is virtuous and absolutely praiseworthy…

      Creating wealth is deeply disturbing, suspicious, and likely merely self interested, and therefore can be morally dismissed as being greedy.

      The following excerpt comes from http://tomwoods.com/podcast/ep-248-one-year-of-the-tom-woods-show-tom-takes-on-more-myths/#comment-1746327349

      Progressive assertions:

      1) Scarcity is NOT natural. Scarcity ONLY happens because of greed. Production isn’t necessary; only sharing. At any time in the past, present, or future, universal prosperity is always possible, except for the greed of a few.

      2) Anarcho-syndicalism https://en.wikipedia.org/wiki/Anarcho-syndicalism , as advocated by folks such as Noam Chomsky, is the way to go. No one needs prices to know what is worthwhile to do. Reason, and good will, are adequate to plan production. Labor is not a commodity.

      3) Sovereignty should be based upon Good Intentions and not free moral agency. Corollary: Rule by Philosopher Kings!!

      4) No one should ever have to suffer through no fault of their own.

      5) From each according to their ability, to each according to their needs (regardless of cost to everyone),… is still the best way to organize society,… but people are too greedy and selfish to make it work. It would be better for society to live as social insects, than as human beings.

      6) Why be satisfied with trade-offs when solutions suggest themselves so obviously!

      7) Wealth is consumption, not production. We have our cake, not because we bake it, but because we eat it.

      8) Results flow from will, and will alone. If good results are not forthcoming, it is ONLY due to either a lack of good will or the presence of an opposing evil will. It is NEVER construed that results are lacking due to a lack of knowledge. Knowledge, science, technology, skills, etc., are just incidental details.

      9) Lifeboat ethics reign always.

  • https://www.facebook.com/david.rogers.hunt David_Rogers_Hunt

    Sometimes I find it reassuring that the same fallacies keep occurring over and over again. It is just so tragic that it is always the weakest members of society that necessarily suffer the most under them.

  • Avi Marranazo

    Interesting article about Krugman on The Occidental Observer: http://www.theoccidentalobserver.net/2016/02/the-krugman-scam/

  • Lars Göran Andersson

    Thinking of the alien invasion… Isnt that already covered by the climate change debacle and all its implications?

  • George

    Keynes warned FDR that he was implementing Keynesian economics wrong. Keynes posited that government should increase spending in times of emergency to help those in extraordinary need, but once the emergency is over the government should cut spending and save money for the next emergency. He didn’t promote government endlessly overspending.

  • Bob_Robert

    Like Moi below, I am continually astounded that the “mainstream” engages in the Broken Window Fallacy to such a degree that they have entire edifices of “multiplier effect” build upon it.

  • Josh Shepperd

    In my opinion the right wing equivalent of
    Krugman would be Rush Limbaugh. He’s a well-known media figure, arrogant, often
    offends others on his own side, & doesn’t refute opposing views just points them
    out and chuckles at them while he pops pain pills.

  • Dagny

    This may be my favorite CK! I loved the inequality one too!

  • Dagny

    How dare anyone imply Krugman would act/spin out of self-interest. Human frailty only afflicts the “other guy.”

  • Christian

    The Woods/Murphy interplay is just perfect. I would listen just for the jokes!

    Please set up a way to donate to the show via PayPal. I am feeling guilty getting something so awesome for free.

  • Brent Ancap

    I was looking back through some classic Peter Schiff youtubes, and it occured to me that he did some contra-Krugman stuff too.

    Bob talked about the alien invasion. Peter took a swing at it:

    https://www.youtube.com/watch?v=D_idzZWSnu8