Ep. 106 One of the Top Krugman Errors Ever, Literally Out of Economics 101

1 October 2017     |     Tom Woods     |     19

Krugman says: who cares if high marginal income tax rates make people work less, or lower rates would give them an incentive to make them work more? It’s all a wash, says Krugman: if they work more they also earn more, so they get all the gains and society gets nothing.

This is smashed like nothing we’ve smashed before.

Krugman Blog Post

Why Do You Care How Much Other People Work? Revisited” (September 25, 2017)

From Krugman’s Textbook

Page 521 of Economics, by Paul Krugman and Robin Wells (PDF)(Google Books)

Contra Column

Bob (citing Keynesian Karl Smith) documenting Krugman making this same mistake back in 2012…
Krugman, Karl, and Kalculus,” by Bob Murphy

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  • NoMoreFed

    If Steve Jobs and other top innovators at Apple had just decided that it wasn’t worth producing so much, then they would have made less money. Aside from the invention of the iPhone and iPad, it’s basically all a wash.

    • mary

      As far as I’m concerned, it would have been a wash. SpyPhones suck and SpyPads are nothing more than toys.

      • NoMoreFed

        The hundreds of millions of people who use smartphones and tablets might not think it is a wash.

        • mary

          So the brainwashed masses are a touchstone for you? Ok…

          • NoMoreFed

            This episode discussed the gains of society. And the betterment of hundreds of millions of people is a touchstone for me, both morally and from a selfish perspective. If it weren’t for the “brainwashed masses”, you would have nothing. How are you typing messages on your computer? Did you build your computer? Do you grow your own food, and did you build your own shelter? Or did you have to engage in trade with the “brainwashed masses” to help you?

            You must have a lot of friends.

          • Kuro1

            Mary apparently is just a hater.

          • mary

            Really? That’s what you got out of my not liking Apple products? You now have insight into my soul, huh?
            Can I be you?

            I believe Jobs was a fraud. He defrauded his shareholders at Apple and Pixar of millions of dollars with his stock option scam. When he saw other ceos going to jail for the same crime, he hired Al Gore for his board of directors and nothing was heard of the scandal again.

            Jobs, like the other SillyCon Valley rock stars are propped up by and take direction from the MIC. All these companies do now is fall all over themselves to develop the next surveillance product to track and control the masses. They aren’t in the slightest interested in the betterment of mankind, or providing what the consumer wants. Many of these companies are running at a loss to drive mom and pop local businesses out of business so that everyone can be herded into w2 jobs with major corporations–the better to control the population. They bring in h1b visa people from India to displace American workers claiming that they can’t find qualified Americans. What nonsense. They are the parasites that are destroying the host.

            Exactly how did Jobs get that liver, btw? Do you think he took a number and waited his turn?

            So tell us, do you really blow hundreds of buck a year on the latest scam SpyPhone? Do you stand in line for hours to buy it? Do you have door knobs in your house? Ja, ja, ja. Do you spend hours on fakebook, too. Ja, ja, ja. Well, it’s your money, and it was your privacy…

          • Kuro1

            Don’t hate at me. What are you doing about it? Soon much hate! Do something…

          • mary

            I’m amazed to see this “hate” silliness on a libertarian webpage. There was no “hate” anywhere in any of my posts. This is so childish, making statements about a person online that you have no way of knowing.

            For the record, I exposed criminality of the god, Steve Jobs, and pointed out that goals of the powers that be are to force as many people as possible into w2 jobs, and to off-shore jobs.

            Then I ridiculed Apple’s marketing baloney, and fakebook too. Oh, the hate… how horrible.

          • lambchowder

            weird to see a kind of worker congratulatory statement from a guy with the username “no more fed”, the hated institution that impedes your selfish perspective to grow your income at the cost of max employment.

            anyway do you know anything about steve jobs? he wasnt exactly the consumer extraordinaire. he could have rejected a stock option and did the same thing. that is a possibility, you know. to not avail yourself of every reward.

          • mary

            I’m using a pc compatible desktop to type, not an over price Apple without buttons. I never said that I don’t use a computer. I said I don’t use an overpriced SpyPhone, nor a toy for a computer.

          • NoMoreFed

            I am glad you have been able to find a computer that is free of NSA spying.

            As to your ad hominem comment, please go back and read your original comments in response to mine.

          • mary

            Holy cow, saying Apple products suck is an insult to you personally???????????????? This is really ridiculous. Oh I get it, Apple is a life style choice and I’ve offended your life style.

          • NoMoreFed

            You stated: “So the brainwashed masses are a touchstone for you? Ok…”

          • Dexter Morgan

            Value is subjective.

  • lambchowder

    now you see why capitalists looooove unpaid overtime. they make it a wash, one way or another.

  • http://www.reinkefaceslife.com/ ferdinand reinke

    When I listened, I immediately thought that “taxing the rich” would deprive society of important contributions. Don’t know how to say that in fancy ekkynomics lingo but I believe it’s true.

  • Chuck

    As a libertarian, I want to believe the argument made in this podcast. Just to be sure, are you citing Krugman’s most recent edition of his textbook? Are there any caveats in that textbook discussion that support Krugman’s argument that “its a wash”?

    • Galgus

      Part of the inherent flaw is that profits, without fraud or coercion, indicate mutually beneficial action for the producer and the consumer.

      The economy is build on such mutually beneficial transactions: if it were a zero sum it would make no difference if anyone or everyone worked or not.

      It is a fallacy to say that people only benefit themselves and not society by working and consuming with that salary.