Ep. 120 Krugman Tries to Explain Away the 2017 Economy

10 January 2018     |     Tom Woods     |     6

Immediately after the 2016 election, Krugman predicted markets would “never” recover, but after a strong 2017, Krugman is suddenly reminded that presidents don’t have much influence over the economy after all. But if we should need more stimulus, he says, we’ll be sorry we don’t have a Keynesian in office.

Krugman Column

Can the Economy Keep Calm and Carry On?” (January 1, 2018)

Contra Column

Krugman’s Case for Deficits Flip Flopped IN EIGHT WEEKS,” by Bob Murphy

What Krugman Said

What Happened on Election Day” (November 9, 2016)
(markets will “never” recover)

Chart Mentioned

It is possible to detect the election in the data:

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  • http://2vnews.com 2VNews

    Tom Woods is a little rusty.

  • Chris DeSandro

    By far one of the best episodes ever. Straight summary of the column by Tom and a succinct analysis by Bob. Very little grab-ass. Excellent job.

  • Robert

    We’re going to have to make a list of Tom’s speaking/writing likes and dislikes. We already knew that he gets incensed when people use unnecessarily lofty words like “prevaricate” instead of “lie,” but he does have a penchant for the turn-of-phrase, “rhetorical flourish.”

    Now we can add “good to go” and “going forward” to the dislike list. There have been bountiful examples over the years; we need a stenographer to forge an all-encompassing, perennial archive of such phrases.

  • From_My_Cold_Dead_Diet_Coke

    Not enough grab-ass

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

    By the Way, Black Unemployment Just Hit the Lowest Level Ever Recorded

    I would love to hear a broadcast about how Krugman/Democrats/Progressives will try to spin this!

    Let’s see,… for approximately 70 years blacks voted overwhelmingly Republican,… then for 70 years blacks voted overwhelmingly Democratic,…. could this possibly be about to change?

  • Arthur_500

    A number of years ago NPR interviewed Alan Blinder who explained mathematically the Keynesian size of the necessary stimulus package. It came out to about what his model said it should.
    So why did the stimulus not work?
    Krugman’s explanation for everything is that the gubmint needed to spend more. But no matter how much is spent it is never enough.
    Maybe it is time to forget this model.
    It took quite a while for Keynes’s ideas to catch hold. FDR couldn’t be considered an example because he wasn’t intelligent enough to know of Keynes theories. He just spent money because it showed he was doing something and he could get re-elected.
    Kennedy was arguably the first president to accept Keynes. Since then politicians have given up any pretense of even understanding the theory and simply feel that spending is the way to go. I would argue they are just being pragmatic like FDR and trying to get re-elected.
    How long will it take before Keynes is no longer considered the definitive economic program. Or, as a former co-worker once said, “Anyone who has ever taken Econ 101 KNOWS…”. Maybe it’s time this crap stop being taught in schools.