According to Nobel Prize-winning economist and former New York Times columnist Paul Krugman, economic slumps with high unemployment are caused by people saving too much instead of spending, and the proper response is for the government to step in and spend more.
I recently joined my colleague Keith Knight in a livestream to debunk that nonsense!
Knight is the Managing Editor of The Libertarian Institute, where I am a Research Fellow. Watch us efficiently dissect Krugman’s economic fallacies in this entertaining and highly educational discussion:
Also mentioned during our discussion was my book Ron Paul vs. Paul Krugman: Austrian vs. Keynesian Economics in the Financial Crisis:
If you’d like to learn more about how the Federal Reserve’s inflationary monetary policy caused the housing bubble that precipitated the 2008 financial crisis, this book is for you!
You’ll learn how “crazy” Ron Paul accurately warned as early as the year 2000 how the Fed’s policy of pushing interest rates artificially low would cause a housing bubble, and how “wise” Paul Krugman advocated that same Fed policy specifically to fuel a housing boom.
Which of these issue/items will be dealt with: ISDS Clauses in trade agreements, bank bail-outs-ins, preferred creditor status for hedge_fund sellers of derivatives ?
I’m afraid I don’t understand your question. Please clarify what you are asking.
Your assessment could be viewed from both sides.
Saving can ruild or bolster up an economy but the same money saved up should be rewired into the economy to ensure stability.
I’m not sure I understand what you mean. Savings should be thought of as deferred spending.