Mr Krugman thus implied that the British government—deliberately or mistakenly—had engineered measly growth at the beginning of its term, thus making it easier for the economy to roar back as the election approached. That would seem to ascribe to the coalition an unrealistic level of strategic wizardry and general deviousness, beyond even that possessed by the chancellor of the exchequer, George Osborne. Though interesting, it may say more about Mr Krugman than the British government. —C.W.. Of course, as many of us already know, Paul Krugman is fond of crazy conspiracy theories.
Step One: Claim that “austerity economics” will bring about low growth or recession, and minimal job gains or even job losses. Step Two: When the economy rebounds, pull an Emperor Palpatine and claim that “everything is proceeding as I have foreseen.” Is this approach dishonest? Of course it is. Should Krugman stop being dishonest? Of course he should. Should Krugman’s supporters call him on his dishonesty? Of course they should. Will Krugman stop being dishonest? Certainly not. Will his supporters call upon him to stop being dishonest? Don’t make me laugh.
To wit. As flip-flops go, this one is quite the biggie. I expect that Krugman’s reply–if there is one–will involve some combination of claiming that Professor Tabarrok is either stupid, or evil, or both; that kind of response is par for the course at Krugman’s blog whenever he is critiqued. Too bad for Krugman that there is no substance to go with his snark, which more and more people are noticing, of course.
Paul Roderick Gregory begs to differ with the notion that Europe is in the grips of austerity: The Keynesian stimulus crowd blames austerity for the world’s economic woes without bothering to examine facts. I advise them first to consult my colleague at the German Institute for Economic Research (Georg Erber, I See Austerity Everywhere But in the Statistics), who, unlike them, has actually taken the time to examine the European Union’s statistics as compiled by its statistical agency, Eurostat.The official Keynesian story is that the PIIGS of Europe (Portugal, Italy, Ireland, Greece and Spain) have been devastated by cutbacks in public spending.…