Wednesday, September 1, 2010

Bubble Economy

Paul Krugman on August 2, 2002 in the New York Times:

"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."

Keynesians, bureaucrats, elected officials (and/or those who may not necessarily be concerned with conditions left for future generations) are always much more casual with other people's money.  Reaganite Conservatives, Libertarians, Classical Liberals, followers of the Chicago school of economics (such as Milton Friedman), and those of the Austrian school of economics (such as Ludwig von Mises and Friedrich Hayek), believe in allowing the markets to work in order to achieve liberty, long term economic growth, and economic stabilization.


Anonymous said...

Paul Krugman is by far one of the worst people on Earth. He is all left, and is clueless. It is a shame that Bill Maher(scum of the Earth) has his own show and lets these pigs talk freely on his show.

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