This page has been archived and commenting is disabled.

Why Regulation Is Good For Growth

Tyler Durden's picture





 

From Azizonomics

I have in the past criticised regulation for throwing up barriers to entry and taking away opportunity from the youth.

But it turns out that regulation (the more the better) can be an engine for growth.

From Paul Krugman:

As some of us keep trying to point out, the United States is in a liquidity trap: private spending is inadequate to achieve full employment, and with short-term interest rates close to zero, conventional monetary policy is exhausted.

 

This puts us in a world of topsy-turvy, in which many of the usual rules of economics cease to hold. Thrift leads to lower investment; wage cuts reduce employment; even higher productivity can be a bad thing. And the broken windows fallacy ceases to be a fallacy: something that forces firms to replace capital, even if that something seemingly makes them poorer, can stimulate spending and raise employment. Indeed, in the absence of effective policy, that’s how recovery eventually happens: as Keynes put it, a slump goes on until “the shortage of capital through use, decay and obsolescence” gets firms spending again to replace their plant and equipment.

 

And now you can see why tighter ozone regulation would actually have created jobs: it would have forced firms to spend on upgrading or replacing equipment, helping to boost demand. Yes, it would have cost money — but that’s the point! And with corporations sitting on lots of idle cash, the money spent would not, to any significant extent, come at the expense of other investment.

So by forcing private firms and individuals into spending money on things they don’t believe they need, government can create demand, which will lead to jobs via the magic of Keynesian multipliers.

Central planners know better than individuals and businesses. That is because they tend to be better educated, having attended the best schools and universities. Central planners tend to think about the bigger economic picture, while businessmen and individuals tend to have small parochial horizons. They are simply not qualified to know how to spend their money.

Bastiat was wrong — anything that creates spending during a depression will have a good effect on unemployment and aggregate demand. Austrian economists and libertarians carping on about opportunity cost should look at the opportunity cost of not forcing businesses to spend. During recessions, businesses tend to hoard cash, causing a fall in aggregate demand. This means prices fall, and the value of debt rises as debtors struggle to make payments on falling incomes, which can lead to mass defaults. The cost of not creating the spending would be falling demand and greater debt deflation. Well-educated central planners understand that under such circumstances government must do all it can to get the economy flowing again to stabilise price levels, and the best way to do that is forcing businesses and consumers into spending their cash on things they would not otherwise need or want, as well as by creating inflation.

It is also imperative that well-educated central planners do all they can to alleviate the damage that citizens are doing to our environment. The common businessman does not think about environmental concerns. He only thinks about maximising profit, like a common jungle beast. And we know what happens when this primal force is unleashed upon the world — we get economic depressions. It is the job of the well-educated central planner to correct his dangerous and deleterious behaviour. This can be done through levying taxes, by passing laws to mandate spending, or by laying smart regulations.

The biggest problem with “free” markets is the stupidity of the common people. How can they possibly know what they want, or what they want to achieve when they have not attended prestigious universities like Oxford, Harvard, or Yale? Without help from central planners working with fact-based information derived from simulations, mathematical models, and empirical studies the common people will never be able to make informed economic choices. Thanks to the genius of central planning for the common good — as well as the hard work and self-sacrifice of central planners — the common people are liberated from making difficult economic decisions. They can concentrate on what they are qualified to decide — what to have for lunch (so long as its contents have been approved by central planners for consumption), what to name their children (so long as it comes from a list of names pre-approved by central planners), or what to watch on television (so long as the transmission has been approved by government censors).

 

Happy April Fools’.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 04/01/2012 - 12:16 | Link to Comment Burr's 2nd Shot
Burr's 2nd Shot's picture

I always suspected M$B was Paul Krugman.

Sun, 04/01/2012 - 12:27 | Link to Comment ba dum tiss
ba dum tiss's picture

"The Nonsense of a Liberal."

Sun, 04/01/2012 - 12:36 | Link to Comment redpill
redpill's picture

Look, we gave economic liberty a chance, it just doesn't work.  It's time to turn the reigns over to the people who are actually qualified to make economic decisions for all of us, like Mr. Krugman and Mr. Bernanke.  Only then can we get out of this malaise.

Sun, 04/01/2012 - 12:40 | Link to Comment economics9698
economics9698's picture

John got one of his blogs in here, I want one!

Sun, 04/01/2012 - 13:04 | Link to Comment spiral_eyes
spiral_eyes's picture

And I promise you all —

With central planning, nothing will ever go wrong.

Sun, 04/01/2012 - 13:15 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

April Fools....right!!

Sun, 04/01/2012 - 15:13 | Link to Comment dark pools of soros
dark pools of soros's picture

hhaha beat me to it!

Sun, 04/01/2012 - 15:48 | Link to Comment malikai
malikai's picture

Now we need MDB to show up and declare his love for Austrianism and Libertarians.

Sun, 04/01/2012 - 16:33 | Link to Comment Pinto Currency
Pinto Currency's picture

 

Krugman is so busy publishing b.s that he doesn't realize is that there is a run on tar and feathers rapidly developing.

Sun, 04/01/2012 - 13:23 | Link to Comment AldousHuxley
AldousHuxley's picture

Central planning works. but the side effects are poor and dumb become poorer and dumber because their ignorance and poor decisions are subsidized. Commoners are happy until the smart and hard working give up because they don't see their efforts being rewarded and everyone loses.

 

Even graduates of Yale are subsidized because because now even elites buy into that shit that was for the lowerings.They all go into wall st. to gamble rather than create industries.

 

The biggest problem with “free” markets is the stupidity of the common people.

 

that's because people want to be lazy and stupid.

 

common people are why Sarah Palin is popular because half of common people have less than IQ of 100 and they make decisions on emotions rather than logic which gets them into trouble. Do you really want to reward the ilks of white trash Sarah Palin and expect that she will be able to outwit evil genius like ex-KGB "I never smile" Putin?

 

 

Sun, 04/01/2012 - 13:37 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Ass faced fuck

Happy April 1 Senior Superiority Plus to the 5th

Sun, 04/01/2012 - 14:08 | Link to Comment LowProfile
LowProfile's picture

Your ZH handle is an incalcuable insult to the man.

Sun, 04/01/2012 - 14:26 | Link to Comment Ripped Chunk
Ripped Chunk's picture

How dare you name yourself after a great author who actually had vision?

Today is a good day to drown yourself.

Sun, 04/01/2012 - 16:30 | Link to Comment Mugabe
Mugabe's picture

L

common people are why BARACK HUSSEIN BARRY SOETORO OBAMA is popular because half of common people have less than IQ of 100 and they make decisions on emotions rather than logic which gets them into trouble. Do you really want to reward the ilks of black third world trash  BARACK HUSSEIN BARRY SOETORO OBAMA and expect that she will be able to outwit evil genius like ex-KGB "I never smile" Putin?

 

THERE FIXED IT FOR YA....NO THANKS NECESSARY

 

 

Sun, 04/01/2012 - 16:34 | Link to Comment LowProfile
LowProfile's picture

You are no better.

Take your NWO Left vs. Right BS somewhere else, precious few buy into that here.

Sun, 04/01/2012 - 16:36 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Why thank you Mugabe you bag faced cunt piece of shit.

Sun, 04/01/2012 - 14:22 | Link to Comment Bagbalm
Bagbalm's picture

Economic liberty failed to send the right money to the right people. All fixed now.

Sun, 04/01/2012 - 13:35 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Because if the person who got ripped off actually wins a settlement they spend the money? And perhaps a few crooks get put in jail. Nah, crazy talk.

Mon, 04/02/2012 - 08:40 | Link to Comment Imminent Crucible
Imminent Crucible's picture

...or, "The Conscience of A Sociopath".

Krugman and his shifty eyes. He gives me the creeps. Charlie Manson looks more reliable.

Sun, 04/01/2012 - 12:17 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

April Fools! I get it...

Sun, 04/01/2012 - 12:21 | Link to Comment cossack55
cossack55's picture

Not at all. I now feel so free and liberated I cannot see the bonds forged upon my person in the form of never-ending debt.

Sun, 04/01/2012 - 12:34 | Link to Comment Winston Churchill
Winston Churchill's picture

April fool in intent maybe.

Krugman probably believes exactly that though.

Has to be true to be a really funny spoof.

Sun, 04/01/2012 - 12:43 | Link to Comment jcaz
jcaz's picture

Yep-  Krugman is a Yale boy, so either he's being sly, or going MDB on us......

Sun, 04/01/2012 - 15:33 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Krugman is like rest of the ivory white tower dwellers. Some ass hole told them this crap was the truth years ago and since they live isolated, shallow lives, they believe. Educated idiots. Our world is populated with them.

Sun, 04/01/2012 - 12:17 | Link to Comment madcajun
madcajun's picture

The above is a perfect example why you must stay off the crack. It fries the brain.

Sun, 04/01/2012 - 13:15 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Perhpas Kruggybear should try it some time. He might have an epipanhy.

Sun, 04/01/2012 - 12:19 | Link to Comment ISEEIT
ISEEIT's picture

You neglected to mention Princeton?

What up with that?

Sun, 04/01/2012 - 12:22 | Link to Comment vmromk
vmromk's picture

Regulation ? Who needs regulation when we have the DOUCHEBAG in chief Bernanke at the helm ?

FUCK YOU, Bernanke.

Sun, 04/01/2012 - 12:30 | Link to Comment Jonas Parker
Jonas Parker's picture

I thought Obama was the "Douchbag-in-Chief" and Bernake was merely the "Douchbag-in-Thief".

Sun, 04/01/2012 - 13:28 | Link to Comment spiral_eyes
spiral_eyes's picture

Douchebag AND Thief.

Sun, 04/01/2012 - 12:23 | Link to Comment Zola
Zola's picture

I actually thought this was MDB first Zero Hedge Post. But it is not a joke actually... It is a very important question The biggest problem with “free” markets is the stupidity of the common people  because at the end they will kill the free market by electing the wrong kind of people..


Sun, 04/01/2012 - 12:53 | Link to Comment KickIce
KickIce's picture

Actually more on our education and value system rather than the markets.  I guess you can get into chicken/egg arguement with this one.

a couple of Thomas Jefferson quotes:

Enlighten the people generally, and tyranny and oppressions of body and mind will vanish like evil spirits at the dawn of day.

 

 Whenever the people are well-informed, they can be trusted with their own government.

 

Sun, 04/01/2012 - 13:04 | Link to Comment CH1
CH1's picture

electing the wrong kind of people..

Ummmm... dude... all elections elect the wrong kind of people.

Sun, 04/01/2012 - 15:34 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

CH1, I think that is what Zola was getting at.

Sun, 04/01/2012 - 17:05 | Link to Comment smb12321
smb12321's picture

It has nothing to do with being dumb (electing "wrong" people) and everything to do with the change in societal views. The incessant pounding by the MSM that Candidate 1 will "give you free _____ (fill in blank)" while mean old Candidate 2 says we can't afford it has taken its toll. Given the lack of critical thinking and vested interest (gov't check / no taxes) what would one expect to happen?  

When folks blast Ron Paul for "far out" ideas I respond that once ALL Americans considered his ideas the norm.  Don't spend more than you make; follow the Constitution and prosperity comes from saving, a strong currency and peace.  The fact that so few Americans (much less politicians) believe in those things says it all.

Sun, 04/01/2012 - 12:23 | Link to Comment three chord sloth
three chord sloth's picture

You forgot the space aliens. Space alien attacks have a glorious Keynesian multiplier.

Sun, 04/01/2012 - 13:03 | Link to Comment BobPaulson
BobPaulson's picture

Seriously though, the UFO thing is not far off. The pigmen like to honey pot Zero Hedge and other sources of intelligent discussion with troll posts that advocate violence, racism or extreme conspiracy theories to discredit it. Then the mind controlling MSM can create sentences like "Whackos and nutjobs who believe in stuff like alien abduction, ESP, illuminati and gold standard currency post of Zero Hedge" or "Folks like Charles Manson, Clifford Olson and Ron Paul avocate withdrawl from Iraq". The association created in the phrase program the sheep to think anything not from the MSM cannot be trusted as valid sources of information.

Mon, 04/02/2012 - 01:27 | Link to Comment Kobe Beef
Kobe Beef's picture

People who believe in the MSM are more lost than those who believe in alien abduction.

Sun, 04/01/2012 - 12:28 | Link to Comment KickIce
KickIce's picture

If there's one complaint I have against ZH it's that nobody ever uses any sarcasm.  Of course the elite are smarter, look what a well-oiled machine the US has become.

Sun, 04/01/2012 - 13:39 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Yea, lot's of oil. I agree with that

Sun, 04/01/2012 - 17:49 | Link to Comment The Alarmist
The Alarmist's picture

And getting better every day with elite solutions, e.g. NDAA, PATRIOT, SOPA, PIPA, etc., to fix all the problems of the world, which seems to be the commoners being empowered to think and act on their own rather than to have their information channeled to them and to have all their decisions pre-ordained by their superiors.

Sun, 04/01/2012 - 19:26 | Link to Comment UP Forester
UP Forester's picture

Everybody knows that in a centrally planned economy, the squeaky wheel gets greased....

Sun, 04/01/2012 - 12:31 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

You may have heard about that Trillion$$$ student loan problem (with the 35% delinquent rate)?

Here's where the loan money goes:

Fans burn couches, flip cars after Kentucky's win

 

LOUISVILLE, Ky. (AP) — Riot police used pepper spray in small amounts for crowd control as thousands of rowdy fans swarmed into the streets near the University of Kentucky campus, overturning cars and lighting couches ablaze after a victory over cross-state rival Louisville in a Final Four matchup.

 

http://news.yahoo.com/fans-burn-couches-flip-cars-kentuckys-win-03383240...

Sun, 04/01/2012 - 12:35 | Link to Comment Jonas Parker
Jonas Parker's picture

Interesting, since the University of Kentucky is in Lexington... The MSM AP must have a geography problem.

Sun, 04/01/2012 - 15:35 | Link to Comment wee-weed up
wee-weed up's picture

The MSM AP has MANY serious problems. Geography is only a minor one.

Sun, 04/01/2012 - 12:37 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

If the government had a 5,000 page document regulating shoe laces, I would feel much safer.  Unregulated shoe laces can maim, injure and kill!  I hope Congress does something about this!

Sun, 04/01/2012 - 12:53 | Link to Comment SilverIsKing
SilverIsKing's picture

Laces won't be regulated. They'll be banned.

We first need to wait for the Velcro manufacturers to pay off the right politicians.

Sun, 04/01/2012 - 16:43 | Link to Comment akak
akak's picture

When shoe laces are outlawed, only outlaws will still wear shoe laces.

Sun, 04/01/2012 - 16:46 | Link to Comment The Alarmist
The Alarmist's picture

What about slip-on shoes?

Sun, 04/01/2012 - 18:18 | Link to Comment akak
akak's picture

Wearing slip-on shoes is the mark of anti-Velcro conspiracy theorists and homegrown anti-government terrorist extremists, and all patriotic US citizens are encourage to report such suspicious activity to their nearest Department of Homeland Security office as part of the "See slip-ons, say something" program.

Mon, 04/02/2012 - 14:51 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Frequent fliers know about the advantages of these........

Sun, 04/01/2012 - 12:38 | Link to Comment spooz
spooz's picture

Not all regulation is created equal.  Painting it all with the same brush allows the effects of financial deregulation, arguably the main cause of the financial crisis, to continue.  Of course, meaningful regulation requires regulators willing to do their job, and more simple regulation is better (Glass-Steagall was far superior to the behemoth Dodd-Frank or the JOBS act).  As Bill Black points out regarding the new JOBS act:

"The primary rationale for the JOBS (Jumpstart Our Business Startups) Act is the claim that we must win a regulatory race to the bottom with the City of London by adopting even weaker protections for investors from securities fraud than does the United Kingdom (UK)."

http://neweconomicperspectives.org/2012/03/the-only-winning-move-is-not-...

Sun, 04/01/2012 - 12:50 | Link to Comment KickIce
KickIce's picture

Well yeah, it's gotten to the point where anymore they just don't give a damn what the people think.  I'd say this had been happening regularly since NAFTA.

Sun, 04/01/2012 - 13:09 | Link to Comment CH1
CH1's picture

Not all regulation is created equal.

Who cares? It's all created by a class of idiots whom are given power to control everyone else's life. That's an inescapable recipe for disaster. Always, everywhere. "Good" regulations just delay the inevitable, slightly.

The position of regulator is ruin incarnate - ALWAYS.

Sun, 04/01/2012 - 13:40 | Link to Comment A Nanny Moose
A Nanny Moose's picture

I would remind you that under Glass-Steagal, we had the S&L crisis, AND the .Bombz. SNL was a bit more contained because we prosecuted at least some of the fraud.

Why is regulation required in the first place? The business cycle largely the result of the actions of the very bureacrats who are charged with oversight of money and credit. This is a tale as old as tulips...at least.

Sun, 04/01/2012 - 12:50 | Link to Comment Bluntly Put
Bluntly Put's picture

Indeed. Well articulated and put forth. Bravo to the author for having the courage to stand up to thousands of years of free choices made by a myriad of human participants all making the wrong choice.

In fact I think its high time we leave the fetters of the past and replace the term "In God We Trust" on our purely contrived and conjured currency with the term "In Central Planning We Must".

 

Sun, 04/01/2012 - 13:01 | Link to Comment Ponzi Unit
Ponzi Unit's picture

Adam Smith and Basquiat had it all wrong. The successful central planning of the Eastern bloc from 1945 to 1989 shows the superiority of the socialist, dirigiste, Marxist , even National Socialist models.

It all comes down to monopoly power of the few exploiting the many. Capitalism is dead, at least free-market capitalism is dead. Who could have dreamed that espousing free markets would one day be regarded as subversive?

Soon we will see universal slackerdom rewarded by worthless fiat, per famous Russian joke "We pretend to work and they pretend to pay us."

Sun, 04/01/2012 - 16:54 | Link to Comment The Alarmist
The Alarmist's picture

The East-bloc was a dynamic raging success until people were corrupted with decadent western products like blue jeans and exposed to decadent western entertainment like Dallas.

Sun, 04/01/2012 - 18:07 | Link to Comment akak
akak's picture

Damn those running-dog imperialist capitalist roaders and the evil way in which they insidiously undermined every gloriously and perfectly engineered Five Year Plan!  Why could they never accept that perfect freedom and prosperity can only be achieved through total, top-down command and control?

At least they are finally coming around under Obama and Krugman.

Sun, 04/01/2012 - 18:39 | Link to Comment The Alarmist
The Alarmist's picture

If we take the open-mic incident at face value, Obama and Krugman are merely the puppets ... the puppet master seems to be good old Vlad himself.

Sun, 04/01/2012 - 13:03 | Link to Comment q99x2
q99x2's picture

'populations were prepared to suspend judgement on their politicians and accept sacrifice if they believed there would be long term gain, but not indefinitely.'

That's from a CNBC article.

Don't need politicians anymore. In the US they don't even read the bills they pass into law. Therefore we need a referrendum system so that the entire population has the ability to vote on every law and policy. Certainly have the technology to allow that to happen today.

And a closed loop monetary system could easily be established completely without bankers.

Therefore since the time has arrived let the people, who are the only ones capable of morality, rule themselves.

Deviat elite step aside the collective human experience is about to begin.

Invert the Pyramid.

Sun, 04/01/2012 - 13:58 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Great mobocracy for 300 million. What happens WHEN I vote to tax you at 100% to pay for my lifesyle? What happens when those who can vote, vote against the interests of those who cannot? This scheme doesn't even work in California.

The only possible way this works is if every NON-vote is counted as an automatic "NO." This way, most of us wouldn't have to waste our time actually voting "NO" for every hair-brained democractic scheme. But how do you know how many non-votes exist without.

Even still, I am going with "The Myth of the Rational Voter."

 

 

Sun, 04/01/2012 - 13:05 | Link to Comment CH1
CH1's picture

Well, shit... let's just let them bleed everything dry. What's the difference at this point?

Sun, 04/01/2012 - 13:12 | Link to Comment riphowardkatz
riphowardkatz's picture

I would disagree in one regard. It is not stupidity but fear. The animal spirits take over and the people foolishly save money instead of spending it. This is where the fearless and ever so brave defenders of our great economic machine swing into action to save the day. If it wasn't for them the prosperity of the last 100 years would have never existed.

Sun, 04/01/2012 - 13:19 | Link to Comment Bluntly Put
Bluntly Put's picture

"If it wasn't for them the prosperity of the last 100 years would have never existed."

Here here. And similarly that wealth spread over large portions of the population could not have been consolidated into fewer, more competent hands.

 

Sun, 04/01/2012 - 13:20 | Link to Comment rwe2late
rwe2late's picture

 SPOOZ

You are right.

It is not the case that public leaders are supposed to be so much "smarter" than their private sector counterparts. And it is misleading to depict it that way.

It is rather that the public servants are supposed to head democratic and open public institutions which can counterbalance against the abuses of private autocratic and secretive institutions.

 There is now complete failure in that public duty, and an alliance between big government and big corporations, ... to the detriment of small business, individual liberty, and general well-being. 

Laws are now made or ignored to protect the finances of global corporations and stifle local enterprise; militarism supports a global war industry and global corporate expansion; health and the environment are degraded so as not to reduce the profitability of insurance, food, chemical, and energy giants.

Sun, 04/01/2012 - 13:18 | Link to Comment lasvegaspersona
lasvegaspersona's picture

On my way  toPrinceton to break all their windows. They can have economic improvment first...my gift...no return gift required...you're welcome

Sun, 04/01/2012 - 14:00 | Link to Comment A Nanny Moose
A Nanny Moose's picture

I see wut ya did thar!!

Sun, 04/01/2012 - 13:18 | Link to Comment PaperBear
PaperBear's picture
BIG BROTHER UK: Internet Activity ‘To Be Monitored’ Under New Laws

Who has the list of fake terrorist plots involving FBI entrapment ? Please post it here.

What about transparency of government ?

Ben Fulford (COINTELPRO googles) had given 31st March as the deadline for the surrender of the elite parasites and their answer is to continue with the same garbage.

Sun, 04/01/2012 - 13:28 | Link to Comment JW n FL
JW n FL's picture

 

 

Are you English Bob?

I want to meet English Bob! who LOVES the Twit on Capital Account! Where Are You? are you busy jerking off in a corner in your mums basement? come forth!

 

Sun, 04/01/2012 - 16:38 | Link to Comment Ripped Chunk
Ripped Chunk's picture

English Bob got the fuck kicked out of him by Little Bill. Everyone knows that.

Sun, 04/01/2012 - 13:22 | Link to Comment JW n FL
Sun, 04/01/2012 - 13:28 | Link to Comment ZeroPower
ZeroPower's picture

Fuck everything about regulation/government intervention.

Sun, 04/01/2012 - 13:44 | Link to Comment JW n FL
JW n FL's picture

 

 

and here's and OLDIE BUT A GOODIE!! http://www.youtube.com/watch?v=3aKj6uJ5Mt4

 

We Need Austerity!

We need LESS! or NO!! Financial Regulations!!

We need the Welfare Poor to Die Off.. just like would happen if Natural Selection was allowed to occur!

 

and any of you that are tired of waiting for America to turn into that Dream Place of no Taxes or Government Intervention and Austerity for the Poor with NO! Child Labor Laws! (work them kids!! Little Bastards got to much energy any way!) All of you! can Move to Africa! and live with ALL the Austerity, Tax Free and Sitting on the Beach you can stand.. http://www.youtube.com/watch?v=iivVKJbtTgs you dont need America to chage into Africa.. You just need to get on a Plane and Move there!

Austerity for as far as the eye can see! and you are Free! to do what you want! No regulations!! GO!! Go! to your Dream Land of Freedom! Africa Awaits!

But America doenst need to be! Africa..

Sun, 04/01/2012 - 15:21 | Link to Comment GernB
GernB's picture

Really, i was unaware Africe was effective in protecting individual rights to life, liberty and property.

Sun, 04/01/2012 - 13:44 | Link to Comment I should be working
I should be working's picture

The biggest problem with “free” markets is the stupidity of the common people.

In contrast the biggest problem with "command economies" is the stupidity of those in charge.

The question is who is more stupid, the CEOs or the politicians. I'll answer it for you, it's the politicians stupid!!?!?! God Krugman is such a blowhard moron. Bridges to nowhere and we'll all be rich.

Sun, 04/01/2012 - 14:19 | Link to Comment barroter
barroter's picture

Deregulate...I like monopolies, cartels and collusions cornering my ass in the market. 

My take from the Bush admin was that deregulation, laissez faire, was a complete failure.

Now, persuade me that turning the US financial system into Dodge City where anything goes, is in my best interests.  I don't trust the gov't...NOR do I trust business. Tyranny from either doesn't suit me at all well.

Sun, 04/01/2012 - 14:43 | Link to Comment riphowardkatz
riphowardkatz's picture

There are more regulations now than have ever existed in the history of the universe. 

Which business has "cornered your ass in the market" apart from those with the government backed ability? They dont exist

How does a business without government backing "corner your ass in the market"?

Please name one business that forces you to buy stuff at the point of a gun?   They dont exist 

Name one thing a business can do to take away your right to life liberty and the pursuit of happiness? 

Please stop making stuff up. If this is an april fools joke you got me.

 

Sun, 04/01/2012 - 15:18 | Link to Comment GernB
GernB's picture

Because its not like regulation creared the housing bubble, or banks whose failure would devestate the economy... Wait, never mind... It did.

Mon, 04/02/2012 - 05:48 | Link to Comment Colonial Intent
Colonial Intent's picture

Gern B is an assmuncher, regs being dropped created the housing bubble and banks going from 10 to 1 up to 37.8 to 1 devastated the economy.

Blame the pols who dropped the regs or the corporations who bribed the pols to drop the regs.

 

Sun, 04/01/2012 - 14:33 | Link to Comment rlouis
rlouis's picture

From 'management by experts' to 'management by idiot savants.' 

Sun, 04/01/2012 - 14:51 | Link to Comment Ms. Erable
Ms. Erable's picture

After reading that, I think I'll go out and break every store-front window I drive past, torch a few buildings, and then cause a 45-vehicle pile-up on the freeway. When the judge asks for a plea, I'll just say, 'Economic stimulation, bitchezzz!".

Sun, 04/01/2012 - 15:37 | Link to Comment GernB
GernB's picture

I've come to suspect that the term "liquidity trap" is economics speak for "Keynesian economics Achilies heel that proves it does not work" or to put it another way "we've flooded the market with money but people still wont borrow and spend like our brilliant theory says they will" Money gets trapped because people see through the sham. They know the money has to be paid back so they save for that day, the only solution to stealing peoples money to stimulate the economy is to steal more until the are debt slaves to a state run by the brilliant minds that concluded freedom is the enemy.

Sun, 04/01/2012 - 15:33 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

"Central planners know better than individuals and businesses"...

Huh.......???

Sun, 04/01/2012 - 15:48 | Link to Comment MrBinkeyWhat
MrBinkeyWhat's picture

You really had me up to the "april fool" line. I thought the article was totally /sarc.

Tell me you were "really joking". Or FUCK OFF.  ;-)

Sun, 04/01/2012 - 15:58 | Link to Comment Zero Govt
Zero Govt's picture

I don't think this is an April Fools, Krugman really is that stupid and really does write crap like this

...it's his most serious piece of work since declaring war was an economic stimulent (surely the biggest wind-up in the history of economics)

Give that f'n retard another Nobel, i dare you

Sun, 04/01/2012 - 17:29 | Link to Comment r00t61
r00t61's picture

I personally prefer Krugman's "If only aliens would invade us then we could get the economy going again" economic theory.

Sun, 04/01/2012 - 18:46 | Link to Comment malek
malek's picture

Sure he did - no need to make that part of the article was an aprils fool joke too!

Sun, 04/01/2012 - 17:04 | Link to Comment The Alarmist
The Alarmist's picture

Yes, that 800 year experiment with increasing personal liberty was clearly a mistake. The fact that it is highly correlated with increasing personal prosperity is merely coincidence.

We serfs should be grateful to go back to the service of our divine-right lords and masters, who so very wisely got us through the dark ages in roughly the same state as that in which we entered it. If it hadn't been for the pesky black-plague making individual labor an auctionable commodity, we might still be living the same sort of Eco-friendly standard of living our forebearers enjoyed in 800 A.D.

Shut up and back to your work, slaves!

Sun, 04/01/2012 - 17:28 | Link to Comment barroter
barroter's picture

Instead of working for the House of D'Medici or the House of Brabant,  we can work for the House of Pfizer or the House of Archer Daniels Midland instead.

Sun, 04/01/2012 - 18:14 | Link to Comment rg
rg's picture

burning down krugman's house would take care of some of his idle cash.  it would force him to spend on upgrading or replacing equipment, helping to boost demand too.  somebody tweet Krugman's address with a special appeal to all Kentucky BB fans.

Sun, 04/01/2012 - 18:42 | Link to Comment The Alarmist
The Alarmist's picture

No, when someone burns down a liberal economist's house, that is merely an example of the "broken window fallacy."  You have to burn down your own house to spur the economy.

Sun, 04/01/2012 - 18:44 | Link to Comment malek
malek's picture

 The biggest problem with “free” markets is the stupidity of the common people.

Luckily that is not true, as the fool and his money are soon parted.

However it is true for

The biggest problem with democracy is the stupidity of the common people.

bacause, as I put it,

  Democracy is when the stupidest 51% decide.

And there is no direct way to let the consequences of those stupid decisions only affect the deciders... except true federalism which we hadn't had since the civil war.

Sun, 04/01/2012 - 20:02 | Link to Comment Catullus
Catullus's picture

If this weren't April Fools, this would be the lead op-Ed on the Huffington Post, Daily Kos, NYT, and CNBC.

Sun, 04/01/2012 - 23:11 | Link to Comment sitenine
sitenine's picture

Happy April Fools Tyler

Sun, 04/01/2012 - 23:16 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

I would vote for Hitler himself if he promised to prosecute the Bankers AND not eat the Jews.

 

Gary Johnson 2012!

Mon, 04/02/2012 - 04:36 | Link to Comment lenitivelea
lenitivelea's picture

trollololololo

xD

Mon, 04/02/2012 - 06:35 | Link to Comment Coldfire
Coldfire's picture

As if Thugman and his ilk have been waiting in the wings while "capitalism" was tried and found wanting. Capitalism, ie., property rights, was administered a cunning drip feed of poison starting in 1913. That eye-hemorrhaging stench wafting off Thugman's editorial perch in the New York Times and every syllable excreted from Bermonkey's mendacious lips is in fact the advanced stage toxic necrosis of a zombie. As if printing money to dig holes and fill them in faster will bring the corpse back to life. Non aggression principle stands, but is sorely tested by Thugman's and Bermonkey's faces which are exquisitely suitable bases for the excellent German word backpfeifengesicht.

Do NOT follow this link or you will be banned from the site!