Ep. 48 Where Does Economic Growth Come From? Krugman Genuinely Stumped

20 August 2016     |     Tom Woods     |     5

We know how to do some things, Krugman says, like deliver health care to everyone, provide for people’s retirement, and increase the wages of low-income people. But economic growth? That’s a tough nut to crack, he says. We can try infrastructure spending, but maybe even that won’t work.

We bring some Contra Krugman awesomeness to this pile of confusion.

Krugman Column

Wisdom, Courage, and the Economy” (August 15, 2016)

Sponsor

The Jason Stapleton Program is a great Monday-to-Friday libertarian podcast, looking at current events from a libertarian perspective. Check it out!

Other Krugman Items

Roots of evil (wonkish)” (March 3, 2009)
Is Growth Over?” (December 27, 2012)

Contra Columns

Does Depression Economics Change the Rules?” by Bob Murphy
The SEC Makes Wall Street More Fraudulent” by Bob Murphy

Related Data

Labor Force Participation Advanced Economies(Link to source)

US Labor Force Participation

Related Episodes

Ep. 47 Time for Lots of Borrowing and Spending?
Ep. 16 George W. Bush Was for Small Government, Says Krugman

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

    Free markets would easily have the support of the majority of intellectuals,… if only intellectuals had something they could contribute to them.

    Philosopher Kings rule under socialism,…
    Philosopher Kings are largely ignored under free markets.

    Or,… to be as explicit as a Daoist can be,…

    How much help can anyone be to water finding it’s own level?

  • David Arum

    I disagree with Krugman ,the Republicans are actually less extravagant than the Democrats.Everything proposed in the Democratic platform will cause shrinkage rather than growth.

  • Ratfink

    Well according to Robert Wenzel’s version of the ABCT over at EPJ as long as the M2 keeps going up the bust will never occur. Maybe he can help Krugman write his next column about economic growth coming from never letting the M2 decrease.

  • Jan Masek

    For some reason and unexpectedly, I still find the “and you know what…” contra cruise jokes funny and I will miss them after October 🙂

  • 100marymich

    Economic growth comes from Free Market initiatives where the individual invents a product and thus needs to hire people to make more of the product to sell to the public at large.
    Then the individuals who are hired and work to make the product can take some of their earning for the purchase of that product or other products that have been produced and made by other hired working individuals.
    The making and the selling of the product/s helps to create profits for the owners of the companies where the product is made. And, thus the profits that the companies earn often lead into the hiring of more productive workers.
    All the above can purely and thoroughly take place to create economic growth.
    When the government tramples in with all of its often-unlawful bureaucracies creating interference in a business growth.
    This happens due to burdensome and ridiculous rules, mandated government paperwork, regulations, taxes and gross fines.
    These government impairment issues often lead into the destruction of economic growth by helping to cause the bankrupting and closing of many companies or the leading of many companies to place their headquarters off shore.