Paul Krugman wins nobel prize in economics….God help us

Last year, Al Gore won the Nobel Peace Prize. As pissed off as I was, I just tried to ignore it. Besides, everyone knows that fruitcake is a joke. But this year, Paul Krugman won the Nobel Prize in economics. This is not so funny. It isn’t funny because people will actually think this guy deserves it. No one actually though Gore deserved it, they knew it was ridiculous. But now, people are actually going to think Paul Krugman knows what he’s talking about. Not good.

Krugman is not an economist. In order to be an economics, you must acknowledge the most basic laws of supply and demand. You must acknowledge that printing money results in inflation. You must acknowledge that price floors and price ceilings are harmful to the market. And most of all, you must understand how a central bank works. Paul Krugman does not know any of this.

He is a political tool. He is a write for the New York Times, and consistently supports socialist policies.  In an article he wrote for “Slate”, he distorts the Austrian School theory of the business cycle. He uses immature analogies, and attempts to use witty dialogue as opposed to intelligence. He explains that the “bust” that occurs after an economic “boom” is payback for people’s evil deeds according to Austrian school economics.

Anyone who actually understands Austrian school economics knows this is absurd. Instead, they say booms of America, were artificial. The economic boom of the 1920’s was followed by the stock market crashing and eventually the depression. The boom of the 1990’s was followed by the recent stock market crash, and soon to be depression. These enormous fluctuation is the market happen because the booms are artificial from the beginning.

When the central bank cuts interest rates, rather than banks cutting them to the real market level, people borrow more. The massive increase in borrowing results in malinvestment, overinvestment, overproduction, and illiquid assets. The current housing crisis is the perfect example. The market is not as it appears, it is in fact, artificial. People borrow more when the interest rates are artificially low, and their poor decisions usually leave them in a hole.

Next thing you know, people are in big trouble. Right now, the banks are relying on the central bank. The problem is that it has no money. Paul Krugman writes:

The natural thing to do, then – and the solution adopted in many previous financial crises – is to deal with the problem of inadequate financial capital by having governments provide financial institutions with more capital in return for a share of ownership.”

Wow. That sounds great. Use taxpayer dollars to fix the fed’s mistake. OH wait, there’s another problem…THE GOVERNMENT HAS NO MONEY!!!!

How exactly do you inject large amounts of credit into the system when you have no money? Simple, you print it. Either Krugman does not realize that the government is broke, or he knows and is fine with the printing of trillions of dollars. If he doesn’t know that the government is broke, he should not be allowed to live. Natural selection should take it’s course. If he’s fine with printing money, then once again, let natural selection take it’s course on this idiot.

No, Paul Krugman knows. But apparently, he sees no problem with hyperinflation and the dilution of our dollar. He would rather mock Austrian economics which he does not even understand, than actually have any intelligent input on the current situation. This man does not understand economics. That’s because he is not an economist. He is a political tool.

Giving him an award which was once given to people such as Friedrich Hayek and Milton Friedman is blasphemy. I am truly happy that these men are not alive to see this abomination to the study of economics. If a man that ignores basic economic laws can be the receipient of this once prestigious award…God help us.

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11 Responses to “Paul Krugman wins nobel prize in economics….God help us”

  1. AMEN!!!! I’m probably going to fail an International Economics class that I’m taking because we’re using Krugman’s textbook and I cannot read it for more than 3 minutes without throwing it across the room. He elaborates endlessly on the most useless, backward, and disproven models and then dismisses monetary theory without even discussing it. Unbelievably stupid!!!

  2. Salinesal Says:

    The Nobel Prize no longer has any meaning what so ever! Paul Krugman has never seen an economic problem that a central government program couldn’t fix.

    Is there a prize for an economic Heretic?

  3. Paul Krugman wrote a textbook??? And universities are actually using it???? WTF!

  4. I use his textbook. It is very good. Not as good as Greg Mankiw’s but it is on a very different subject. His work on imperfect competition and intra-sectoral trade is pretty smart…his columns are another matter.

  5. Krugman is a Keynesian zombie. If there’s a problem, government can fix it. If there’s not a problem, government needs to fix it. People aren’t smart enough to fix their fiscal problems by themselves. Really I think all of this talk about “this is too big of a problem to not do anything” mentality hurts the morale of every American. We just need to tighten our belts and clear our debt. Bad debts (toxic assets) need to be liquidated. If there is no value in them, they just need to go away. I agree with you 100% that he is not an economist. He is a government propogandist.

    • There is going to be two new noble prize subjects added. Noble prize in Truth, Noble prize in Love. They are going to change the noble prize in economics to Noble prize in Plenty. I think Obama is nominated for Noble prizes in Love, Peace, Truth, Plenty. “War is peace, ignorance is strength, freedom is slavery, and inflation is surplus.”

  6. Paul Krugman is an economist and a very skilled one at that. The fact you suggest otherwise makes you look like a complete idiot. You just seem to be repeating very basic information about economics and therefore seem to think that makes you qualified.
    However the problem today with Economics is that it is no longer a science. It has become politicized. Take Keynesian economics for example; at it’s base it’s apolitical and in it’s form has been used recently by an Republican President and Democrat President. Bush tax cuts and Obama’s Stimulus plan. However whatever original concept has become perverted by politics; now it’s a liberal idea and republicans rely on classical economics.
    My point is the problem is that economists like Paul Krugman. Paul Krugman has made great contributions to economics and could make many more. However in the past 5 years or so he has done very little because he is too caught up in convincing everyone “republicans are evil”. Economists should conduct themselves professionally determining and researching for the public’s sake what works best and leave the squabbles to the politicians.

  7. My economics book was a Paul Krugman too and while he did discuss monetary theory his writing is very dull. Also I find it hard to take what he says with full credibility because he is so obviously biased and I would feel that way regardless of what leaning the author had. We’re just supposed to learn the facts in school and then make up our own opinions. Now today it seems like everyone wants to brainwash us into the “right way”.

  8. Anonymous Says:

    WOW!!! I have a degree in Natural Resource Econ, and I wasn’t exposed to a lot of theory. I always had questions about MPC and shit like that in macro, like where the pulled it from, only now am I beginning to understand all the models that I was force fed are totally wrong. Krugman is fucking blind. He is good in academia, formulating theories about things that don’t exist in reality, but when it comes to application you begin to see that he’s full of it. He censors his blog, thereby making him immune to criticism. He is an embarrassment.

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