Name Calling

The Keynesians have gone on a name calling spree. I have seen many articles recently where Keynesians call those who want to balance the budget names. I found the following quote from a Bloomberg article rather amusing.
“There is no reasoning with the public right now,” said Thomas Mann, a congressional scholar at the Washington-based Brookings Institution. “The public would flunk Economics 101.”
I would point out that it is none other than Ben Bernanke who wrote the textbook for Economics 101.  These Keynesians have been firmly in control of monetary and fiscal policies for the past few decades. It is their Keynesian policies that have landed us in the mess we are in. What astonishes me is that after being so wrong for so long not only are the Keynesians not humble, but they are quite certain of themselves.

7 comments:

Anonymous said...

I highly recommend Yves Smith's E-Conned, which explains the fundamental shortcomings of economics as a discipline.

Onlooker said...

Hear, hear! The MMTers are quite obnoxious and arrogant these days as well.

Tsachy Mishal said...

What are MMTers?

Onlooker said...

Modern Monetary Theory

It's been all the rage lately, with them impatiently trying to explain to the world that debt doesn't matter for our federal government. That we don't fund our spending with debt, and therefore can't default.

That with a lack of inflation we can "print" all the money we need and should do so. Any questions about the longer term consequences of doing so tends to be shrugged aside. Etc, etc.

I'm surprised you haven't seen this stuff around lately; at naked cap, Credit Writedowns, The Pragmatic Capitalist, and other blogs.

Tsachy Mishal said...

I have but I didn't know that is what they were called. I was actually referring to them in the article. I think of them as Keynesians maybe Im labeling them wrong.

Anonymous said...

MMT is just Keynes repackaged and updated. Inflation is ALWAYS the solution to deflation. There is no arguing with the logic here. What you can argue with are the results, which have an unequal distributional effect. Those who are benefitting from the current near-deflation (retirees, government workers, investors whose money is mostly in quality bonds) tend to want it to continue and even tip into true deflation. Those who are hurting (most workers, most business owners, investors whose money is mostly in stock or real-estate) tend to want inflation. In the long run, we will have to take the Keynesian road of mild inflation, since those who benefit from mild inflation are the producers, while those who benefit from zero inflatino and deflation are mostly parasites on society. That sounds like a harsh term, but it reflects reality. If all the retirees and idle-rich bond-coupon-clippers died tomorrow, society would be much better off.

IC said...

That last statement is truly moronic. Inflation mostly hurts the savers and the lower income. If it was not for inflation we would not be in this mess, as there would be no need to chase yield trying to avoid the curse of exponential growth of our debt, and thus the starvation of the lower class which then immediately ends our society.