Thursday, April 30, 2015

Yet more lucid, convincing, Krugman

The austerity delusion | Paul Krugman | Business | The Guardian

Yet another good, long, read from Krugman on austerity, Keynesian and anti-Keynesian forces, and England in particular.    (The way The Guardian presents the article graphically is pretty neat too.)

I especially find this section pretty convincing, especially when you read the never ending defence of corporations and businesses (along the lines "how dare anyone accuse Google or Apple of not paying enough tax!") that comes from the IPA associated economists:

Beyond that lies a point made most strongly in the US by Mike Konczal of
the Roosevelt Institute: business interests dislike Keynesian economics
because it threatens their political bargaining power. Business leaders
love the idea that the health of the economy depends on confidence,
which in turn – or so they argue – requires making them happy. In the US
there were, until the recent takeoff in job growth, many speeches and
opinion pieces arguing that President Obama’s anti-business rhetoric –
which only existed in the right’s imagination, but never mind – was
holding back recovery. The message was clear: don’t criticise big
business, or the economy will suffer.

But this kind of argument loses its force if one acknowledges that job
creation can be achieved through deliberate policy, that deficit
spending, not buttering up business leaders, is the way to revive a
depressed economy. So business interests are strongly inclined to reject
standard macroeconomics and insist that boosting confidence – which is
to say, keeping them happy – is the only way to go.

1 comment:

Not Trampis said...

Kruggers presents a very good case.
since the GFC we have had more and more evidence that Keynes was right.
the only economies adopting classical economics all had depressions!