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The only wrong answer is “not enough”

October 25, 2010

I thought it was just me getting tired of Krugman’s tirades (which at this point shouldn’t even be linked to economists….it makes them look worse than they already do)

When the Telegraph has an article with the title “Will someone please shut Krugman up“…the echo chamber known as NYC is taking it’s toll

…The big point missed by those who think elevated public debt doesn’t matter is that these periods of excessive debt utterly crippled the UK economy. Indeed, Britain’s decline through the twentieth century as an economic superpower directly correlates with increased indebtedness. Fighting wars is not good for economic health….

What makes the current unsustainable trajectory of public debt so worrying is that it’s not military spending that is the problem this time around. We cannot rely on demilitarisation to come to the rescue of the public finances, as it has in the past. Public debt is excessive for entirely different reasons – the excess in public spending is not on fighting wars but on treating ourselves

When the only wrong answer according to said “brilliant economists” is ‘you didn’t do enough’ instead of “maybe that didn’t work and we should rethink our theories”…there’s nothing to be done but ignoring them altogether.

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