Comments on: Krugman says Thoma’s right, except when he’s wrong Mon, 30 Mar 2015 20:30:08 +0000 hourly 1 By: Jerrold Vallero Thu, 09 Oct 2014 12:03:17 +0000 I take pleasure in, lead to I found just what I was looking for. You’ve ended my 4 day lengthy hunt! God Bless you man. Have a great day. Bye

By: edgyinchina Thu, 28 Jul 2011 02:09:53 +0000 What deLafayette forgot to mention is the fact that both the Great Depression and the Great Recession had long periods of Republican presidents leading up to them, who gave little or no attention to regulating the Banks, and big businesses who were promising bright futures to everyone, and setting them and the country up for a big fall.

By: Gordon2352 Wed, 27 Jul 2011 23:15:57 +0000 I would paraphrase Krugman’s remark by saying “Krugman, who bases his views on how things usually work, is almost totally useless.”

What the “economic light” of the NYT is saying essentially that, if the real world does not match his economic model, then it is the real world that is wrong.

Unfortunately, Krugman is not alone in this. I have seen other “economists” share that same opinion, which is nothing but “flat earth” arrogance.

These people are not scientists, and Krugman is certainly no economist.

By: 0okm9ijn Wed, 27 Jul 2011 22:18:23 +0000 Could Summers, Krugman and others comment on how to get the Banks reinvest the trillions of dollars in their vault into the economy. Even, when consumers are prepared to make investment, the Banks’ reluctance to make basic commonsense loan has become an impediment.

By: seattlesh Wed, 27 Jul 2011 22:01:36 +0000 Yes Dr. Krugman is not afraid to engage and challenge, including apparently Mr. Thoma. it would be wonderful for Reuters to follow this up with a series of articles and interaction amongst these same economists as to their personal take on the economy and the clown act in Congress.

By: seattlesh Wed, 27 Jul 2011 21:56:17 +0000 This series of articles and commentary by noted economists is a breath of fresh air amongst the numerous tabloid articles.

By: deLafayette Wed, 27 Jul 2011 20:38:57 +0000 Santayana: “Those who do not learn the lessons of history are condemned to repeat it.”

But not always in the same way.

If we look at the years that led up to the Great Depression, we find many aspects of economic activity that are similar to those leading up to the Great Recession. It was a period of binging (The Roaring Twenties), loose money and, largely because of loose money, a stock market’s frenzied crash. Connect the dots … ?

That’s what economists do – they try to connect the dots. That is, find references in the past that explain the present. Some call this science but it is more like doctoring. There is no linear regression showing a direct correlation between the Great Depression and the Great Recession – that would be science. There is only the notion of similarity – which is doctoring.

The Doctor of the Day, at the time, was a British economist by the name of John Maynard Keynes, who postulated (in a seminal piece of work still referred to by economists written in the early 1930s) that the best way out of an economic downturn is Stimulus Spending.

That it works is not science but an almost proven fact that has been demonstrated historically. But it is an historical fact that the Right will neither acknowledge nor pursue in the present context. They have, as a counter-excuse, said that if we reduce the deficit then business will gain confidence and start investing again, which will create jobs.

This sort of nonsense makes most Corporate Managers just laugh (but behind closed doors). It is not Business Investment that will lead us out of the Great Recession but Consumer Spending – and that won’t happen until people are no longer afraid of losing their jobs. This change of mentality will not come in the present circumstance of insufficient and unstimulated Demand.

But as a politician once reminded us, economics may be a science but politics is the art of the possible. And Stimulus Spending from LaLaLand on the Potomac is just not possible – not this year and likely not next year either.

Which is neither science nor art – but just plain dogma.

By: M.C.McBride Wed, 27 Jul 2011 20:25:40 +0000 I am enjoying this news coverage.