Paul Krugman criticized Bernie Sanders again last week, arguing that the numbers in his economic proposal don't work. In particular, he went after economist Gerald Friedman of the University of Massachusetts, arguing that his projected growth figures are far too high to be plausible. Friedman and others fired back, arguing that they were using Krugman's own models to reach their conclusions! Bob and Tom discuss and enjoy this exchange, and then give the Austrian view of the whole thing.
We couldn't pass up this column, called "On Economic Stupidity." If you want to rein in the Fed or not run deficits during a recession, you're just stupid. Here's our reply.
Krugman accuses Establishment man John Kasich -- of all people -- of supporting hard money. Then he tells us that balancing budgets hurts depressed economies. A tone-deaf understanding of American politics, plus old-fashioned Keynesianism -- that's Krugman, and that's what we discuss today.
Krugman evaluates the claims of market monetarists, who blame the Fed for the crisis because its policy was allegedly too timid. Krugman doesn't agree (and on that he's correct!), and he also finds it weird that "free-market" economists would say the Fed "caused" the crisis by not intervening. Isn't not intervening what free-market economists are supposed to favor?