Ep. 184 What Is Trump Doing to the Fed?

14 April 2019     |     Tom Woods     |     17

Krugman is very unhappy about the nominations of Stephen Moore and Herman Cain to the Federal Reserve’s Board of Governors. (Cain’s nomination now seems likely to be abortive.) Krugman devotes particular attention to Moore, whom he considers a partisan hack who changes his recommended policy depending on who is in power. We consider Krugman’s accusations, and also discuss what the best monetary policy is regardless of the state of the economy.

Krugman Column

Why Does Trump Want to Debase the Fed?” (April 8, 2019)

Contra Column

Bob’s qualified defense of Moore/Laffer from George Selgin’s critique.

Related Links

Bob’s debate challenge to Krugman:

The Fed on Trial at FreedomFest (Bob gets a hug from Kennedy around 10:40)

Need More Episodes?

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

The Contra Cruise!

Join us as we set sail for Alaska, July 5-12, 2019!

Audio Production by:
Podsworth Media

Share this post:Digg thisShare on FacebookGoogle+Share on LinkedInPin on PinterestShare on StumbleUponTweet about this on Twitter
  • ProfessorBernardoDeLaPaz

    Chris IS the TRUE genius behind Tom’s and Bob’s seeming brilliance.

  • MikeChuk21

    Setting up this website and podcast is an awful lot of effort to go to just to show that you don’t understand how the economy works. Well-played, I guess. Enjoy the next crash!

    • Tuppenceworth

      “Enjoy the next crash!”? Was that particular to your point or some kind of departing salutation you always sign off with like, “ciao!” or “peace out!”?

      –Enjoy the next crash!

      • MikeChuk21

        So the ’08 crash wasn’t fun enough for you and you’d like to repeat the near-depression, I guess.

        • Tuppenceworth

          Is that the long version? Look, don’t take this the wrong way, Mike, but I must say I honestly don’t think that one’s going to catch on at all as a hip phrase. I mean, just imagine people saying all of that to each other the whole time. Just sounds like some weird rant. But “enjoy the next crash!” was strong.

          • MikeChuk21

            Not looking to coIn a hip phrase. Just noting that Krugman was right about Bush’s economic policies leading to recession, whether those facts conflict with your feelings or not. Unless this some sort of parody site, which is plausible considering how ridiculous it is, in which case I apologize.

          • Philip Jach

            You have no ideas how economic works. Krugman’s Keynesian positions are illogical and unsustainable. “Animal spirits”trigger recessions, yeah right, and daddy state only helps smooth them out.

          • http://www.TomWoods.com Tom Woods

            Imagine how superficial one’s approach would have to be to blame something as pedestrian as “Bush’s economic policies” for a recession of that depth. How about the completely bipartisan monetary policies that gave rise to the housing bubble? Not a word, of course, as usual.

          • http://www.TomWoods.com Tom Woods

            Would this be the same Krugman who described the sequester as a “fiscal doomsday machine” — which was then followed by robust growth?

            The budget deficit declined from 8.4% of GDP to 2.9% of GDP from mid-2011 to 2014. According to what Krugman said at the time, this should have devastated the economy. Meanwhile, on this planet, unemployment fell from 8.6% to 5.8%, and economic growth hit an annualized 5% rate in 3Q 2014.

            There are many, many of these. If you never listen to the other side, you’ll have no idea about them, and be surprised and embarrassed. That’s why it’s a good idea to be educated enough to be able to describe both sides’ positions without caricature, as we do in every episode. As far as I can see, your understanding of our side is limited to the risible suggestion that we support George W. Bush and like recessions.

          • Lysander Spooner

            You seem to have gone quiet. I was looking forward to reading your carefully argued critique of Mr Woods’ responses to your emails.

        • http://www.TomWoods.com Tom Woods

          Someone who has never read a word we’ve written or listened to a word we’ve said wants to come and lecture us with the conventional wisdom. How blessed we are.

          Oddly enough, it was people on our side who disproportionately predicted the very crisis our friend here thinks we’re promoting. I can’t wait to learn more.

        • http://www.TomWoods.com Tom Woods

          Just for fun: what is our view on the causes of the near-depression? Jonathan Haidt of NYU says conservatives and libertarians know their opponents’ positions much better than left-liberals and progressives know their opponents’ positions. I have a funny feeling we have an example of this phenomenon before us at this very moment.

  • Craig

    Re: Krugman (the former economist) see 20:00 et seq.


  • https://www.facebook.com/app_scoped_user_id/YXNpZADpBWEdCT1FGYTVSaWs2aTQtLTkxVU1zSHBhdy1FUlQwNkV2S3o5NE1xSF82MlJEUUNoaWllelNMX2twenNybUFscW5HYlRfeGpKX2VfZAl92YkhkclRmdGxISFdta3NFTGNuV0EZD/ Ken Rogers

    I made it past the early, awful production thru the Woods bit and all the way to about 11:15 (Murphyville) before it became obvious what ideological nonsense this is. Murphy especially. Doling out received wisdom to folks to lazy to research comprehensively.

    • http://www.TomWoods.com Tom Woods

      Good point. What the world needs more of: repeating the establishment’s talking points without question.

      • https://www.facebook.com/app_scoped_user_id/YXNpZADpBWEdCT1FGYTVSaWs2aTQtLTkxVU1zSHBhdy1FUlQwNkV2S3o5NE1xSF82MlJEUUNoaWllelNMX2twenNybUFscW5HYlRfeGpKX2VfZAl92YkhkclRmdGxISFdta3NFTGNuV0EZD/ Ken Rogers

        That’s… not… what… ‘comprehensively’… means… but, you know that.

    • Galgus

      If you want to criticize the show, at least give specifics.

      Insults are poor substitutes for arguments.