Krugman's intellectual Waterloo

Napoleon Krugman at WaterlooLast Monday evening, Lew Rockwell, from a tip by someone named “Travis,” posted this damning quote of Paul Krugman’s from a 2002 New York Times editorial:

To fight this recession the Fed needs … soaring household spending to offset moribund business investment. [So] Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.

Krugman. 2002. Calling for a housing bubble. FULL ARTICLE

A nice note/blog post from the author:

My piece Krugman’s Intellectual Waterloo has been made today’s Daily Article on Check out the hilarious “Krugman-as-Napoleon” image they put together. My thanks to Jeffrey Tucker for selecting it, as well as to nirgrahamUK on the Mises boards and anyone else who passed it on to others.

I consider the Mises Institute web site to be the greatest source for truth and wisdom on the web. So it’s an honor to have something I wrote featured on its main page, and it’s a kick to see my name in the list of Mises Daily Authors, along with the names of a great many of heroes.

I hope my characterization of Krugman’s twisting in the wind will be convincing to people and that this piece will help spread the word regarding the damning quotes that Lew Rockwell and Mark Thornton have discovered. If I could help soften the ground under Krugman’s pedestal and cause it to sink just one inch, I would feel I have truly done good in the world.

Please join the assault on neo-Keyneseanism by contributing a comment to the article’s entry on the Mises Blog.


2 Responses to Krugman's intellectual Waterloo

  1. neuroklinik says:

    Interesting… but I’m pretty sure the housing bubble started forming before 2002.

  2. bkmarcus says:

    Well, the point is not a causal claim.
    To quote the article,

    And what about his strawman protests that he didn’t cause the housing bubble, much less the Enron scandal or Kennedy’s assassination? The man is willfully missing the point. What is damning about these quotes is not that he necessarily caused anything. What is devastating about them is that they expose the intellectual bankruptcy of his economic principles.

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