Tag: Great Depression

Influential Financial Economist Urges Turn to Austrianism »

Thomas Mayer is the chief economist of Deutsche Bank Group and head of Deutsche Bank Research. He has an impressive background as a highly placed analyst in major private and public financial institutions. Which is to say, when he speaks, people are much more likely to pay attention and to give weight to what he says than...
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Regime Uncertainty: Pirrong Debunks the Keynesian Debunking »

As the idea of regime uncertainty has gained ground in recent years as a partial explanation of the economy’s failure to recover quickly and fully, economists and others invested in Keynesian thinking have begun to strike back. One such Keynesian debunking of regime uncertainty was offered recently by Gary Burtless and seemingly endorsed by...
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It’s Housing, Stupid! Parallels Between the 1920s and the 2000s »

In response to my recent essay “Obama and Hoover: Two ‘Smart’ (Stupid) Presidents”, one commenter did me the service of rehashing the old myths about the 1920s and the causes of the depression and how Herbert Hoover did little, FDR did a lot and Hoover has nothing in common with “Wonder Boy” Obama. (Coolidge...
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A Failure of Capitalism? Really? »

So let me get this straight. After the most socialistic century in history, during which all industrialized nations finally found themselves gravitating toward a mixed economy model, we see a somewhat significant financial collapse of international significance and then another stock market drop a few years later, and it supposedly tells us that capitalism...
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Paul Krugman: “Space Aliens Could Save U.S. Economy” »

As Dave Barry used to say, I’m not making this up. Deeply mired in the fatally flawed myth that World War II ended the Great Depression, Nobel Laureate Paul Krugman yesterday proposed that an invasion by space aliens would well provide the economic stimulus this country needs: As Dr. Robert Higgs has more than...
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The Confidence Fairy versus the Animal Spirits—Not Really a Fair Fight »

The humor columnist for the New York Times, Paul Krugman, has recently taken to defending his vulgar Keynesianism against its critics by accusing them of making arguments that rely on the existence of a “confidence fairy.” By this mockery, Krugman seeks to dismiss the critics as unscientific blockheads, in contrast to his own supreme status...
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FDR Redux: A Cartoon Guide to Cutting the National Debt by 40% with the Stroke of a Pen! (Part II) »

(Continued from previous post). During the 1932 campaign, Franklin Roosevelt had a reputation as a mealy-mouth politician who made many promises but held his real plans close to his chest. The following cartoons capture that well: Of course, we now know that with his First Inaugural address (listen here), FDR took on the role...
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Looming Treasury “Default”: Theater of the Absurd »

For weeks, we have been treated to comic opera in D.C.’s theater of the politically and economically absurd. On the stage, the actors—President Obama, the Secretary of the Treasury, congressional leaders—hop about, shouting moronic lines about the national “default” that will occur unless the government’s statutory debt limit is raised, reciting Chicken Little lines...
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World War II: Still Being Touted as the Quintessential Keynesian Miracle »

Someone must have imagined that my hopes for improved economic understanding might be excessively optimistic today and thus needed to be curbed to restore my normal emotional balance, because that person undertook to smash any such hopes to dust by e-mailing me a link to a Huffington Post article by Paul Abrams, “Economically, World War II Was Stimulus...
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Bloomberg: Put Higgs’s Name on That Nobel »

In a Bloomberg report today, “Economic Recovery Is Languishing as Americans Await Signal of Better Times,” Peter Coy casts about for explanations for why the economy is not in recovery, and ends with this offer: A Nobel prize goes to whoever can end this routine and get America growing again. OK, Mr. Coy, send...
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