tag:blogger.com,1999:blog-6276561747841568697.post4328271177411102004..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: The Inflation PrisonerWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6276561747841568697.post-44876511209815044722010-12-05T14:15:00.969-05:002010-12-05T14:15:00.969-05:00Trying to use inflation to lower wages is basicall...Trying to use inflation to lower wages is basically just another way of treating a symptom rather than the underlying problem.<br />In this case, the laws and practices surrounding our employment system have calcified the labor market, particularly by allowing the existence of unions.Count to 10noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-54730820067324171682010-11-30T20:16:09.468-05:002010-11-30T20:16:09.468-05:00Looks like Krugman is following the lead of none o...Looks like Krugman is following the lead of none other than Frederick Hayek to me. <br /><br />Hayek: "Let me say, first, that there are two circumstances in which changes in aggregate demand are indeed the dominating factor in determining the level of unemploymet... "In 1925, Great Britain had made a laudable attempt to return to Great Britain had made a laudable attempt to return to gold but mistakenly to do so at the former parity. This policy created a situation where real wages were generally too high because they had been artificially raised by the revaluation of the pound. In consequence, British industry, largely dependent on exports, had become unable to compete in the world market. In this situation, the restoration of employment required a reduction of real wages which could be achieved by a achieved by a general rise of prices"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-18820767945767603552010-11-30T18:03:55.651-05:002010-11-30T18:03:55.651-05:00@The last Anonymous...
You might enjoy What Obama...@The last Anonymous...<br /><br />You might enjoy <a href="http://www.321gold.com/editorials/maybury/maybury052509.html" rel="nofollow">What Obama Does Not Know</a> as it highlights what makes the Austrian School different.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-29448082576688898112010-11-30T15:51:23.665-05:002010-11-30T15:51:23.665-05:00I really like your post. I like that you read Key...I really like your post. I like that you read Keynes in order to debunk it as opposed to the normal course of talking about something without first trying to understand it. I will book bookmarking your site and look forward to reading more of your posts.<br /><br />I linked here through mises.org and have only heard the term "austrian economics" within the last day. I look forward to learning more about it but like everything else I'm suspect.<br /><br />I'm an Adam Smith guy. I've never read Keynes or Mises, but I look forward to reading both before sketching my composite.<br /><br />Thanks for writing your thoughts!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-87552602652949751472010-11-30T10:34:07.273-05:002010-11-30T10:34:07.273-05:00Krugman is partly right, but for the wrong reasons...Krugman is partly right, but for the wrong reasons. Leaving the EMU would be good for Spain but not because they could then happily devalue their own currency and get "full employment". The main accomplishment would be to remove Spain from the EU welfare teat and make it much harder for Spain to borrow money to pay for welfare and pork spending.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-21909728295224848932010-11-30T07:52:18.519-05:002010-11-30T07:52:18.519-05:00@Anonymous Well you would be living in the US in a...@Anonymous Well you would be living in the US in about 5 years or so from now.Mike Cheelnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-85299355227682958232010-11-30T05:32:14.060-05:002010-11-30T05:32:14.060-05:00Well, here's a billion dollar question.
What ...Well, here's a billion dollar question.<br /><br />What happens when everybody is working in the government sector?<br /><br />And what happens when a country, with a diminished private sector, has a government sector which can keep outvoting it in elections everytime the government runs out of money?Anonymousnoreply@blogger.com