How Little He Knows Economics

Apparently, believing that whenever government not only does things to create unemployment, but also subsidizes it is going to have the effect of there being even more unemployment is immoral. How do we know that? Why, Paul Krugman tells us so.

His proof? He takes a partisan screed from Washington Monthly as an unquestioned authority. Then he finished with some lines from "Treasure of the Sierra Madre" (a great movie, by the way) as even more proof of the intelligence and morality of his position.

What happened, as I pointed out in my last post, is that Krugman claims that he was not contradicting himself at all, but rather turns to Historicism as his claim that in a recession, all of the rules of economics are turned on their heads.

So, when times are good, he says, generous welfare benefits to the unemployed create more unemployment, but when unemployment is high, then generous welfare benefits stop unemployment slide. Go figure.