informationliberation
The news you're not supposed to know...




An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Feb 22 2012, 6:10 AM Category: Economy Source: EconomicPolicyJournal Print

Krugman: The Great Depression Ended Because of Hitler

by Bob Wenzel

I am not making this up. Here is what Paul Krugman said during an interview with Playboy:
The fact is the Great Depression ended largely thanks to a guy named Adolf Hitler. He created a human catastrophe, which also led to a lot of government spending.
And it sounds like he wouldn't have a problem with another Hitler. Krugman went on:
As you know, I’m famous for worrying about space aliens. It looks like it has to be some forcing event. Obviously you don’t operate on that basis, so what people like me will do is keep hammering on this stuff and hopefully it will eventually break through. The safety net has been enough to avoid mass suffering, to muffle it. People are exhausting their savings. This is where you start to wonder how much individuals really do matter. Maybe there is somebody on the political scene who will emerge. I don’t know where that comes from.
Bottom line: These Keyenesians have a totally distorted view of the economy. To them government spending is the answer, even if it means millions of deaths, another Hitler, and tons of government spending on a World War.

For the record, here's Robert Higgs on what really went down during World War II:
When I began to teach U.S. economic history at the University of Washington in the late 1960s, I quickly realized that this tale of the wartime “Keynesian miracle” could not withstand critical scrutiny once one went beyond the barest account of it in terms of the elementary Keynesian model and the standard government macro measures, such as GDP, the consumer price index, and the rate of civilian unemployment. Almost immediately I saw that unemployment had disappeared during the war not because of the beautiful workings of a Keynesian multiplier, but entirely because about 20 percent of the labor force was forced, directly or indirectly, into the armed forces and a comparable number of employees set to work in factories, shipyards, and other facilities turning out war-related ”goods” the government purchased only after forcing the public to pay for them sooner (via wartime taxes and inflation) or later (via repayment of wartime borrowing). Thus, the great wartime “boom” consisted entirely of (1) some people’s mass engagement in wreaking death and destruction and (2) other people’s employment in producing supplies for these warriors after the government’s military labor drain, turning out ”goods” never valued by consumers or private producers in voluntary transactions, but rather ordered by government functionaries and priced completely arbitrarily in a command-and-control economy. In no sense was the alleged ”wartime prosperity” comparable to real, normal prosperity.





Latest Economy
- "They Just Want The Money!" - The IRS Can Now Seize Accounts On Suspicion Alone
- Hillary: 'Don't Let Anybody Tell You' That 'Businesses Create Jobs'
- Does Ebola Justify the State?
- Low Inflation? The Price Of Ground Beef Has Risen 17 Percent Over The Past Year
- EFF, Internet Archive, and reddit Oppose New York's BitLicense Proposal
- Who's Afraid of the Workers' Revolution?
- Sports Stadiums: Temples to Crony Capitalism
- Obamacare Architect Says Society Would Be Better Off If People Only Lived To Age 75









Comments Add Comment Page 1 of 1
Dennis in MI

Posted: Feb 22 2012, 10:06 AM

Link
24213 Obamas emphasis on exports is primarily arms sales to despots. Rommney just said cutting government spending will shrink the economy. In short, govt spending is good for GDP.
What Higgs said is true so far as the type of spending being bad. Spending on infrastucture, education, and r&d would be good spending. Our current govt spending on war, empire and homeland security is the worst kind of spending and Ron Pauls Rx would at least begin to fix that.


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

FBI Agents Cut Internet Access, Pose As Repairmen To Perform Warrantless Search - 10/30LAPD Officer Accused Of Punting Man's Face Like He Was 'Kicking A Field Goal' - 10/30Patriot Act, Passed to Fight Terrorism, Used Mostly In Drug Investigations - 10/30Mom Faces Jail For Using Cannabis Oil To Treat 15-Yr-Old Son's Chronic Pain - 10/30During Cold War, CIA And FBI Hired Over 1,000 Nazis As Spies, Limited Investigations Of Those Nazis - 10/30Sarcastic "God Bless You" Triggers Miami Cop To Go On Psychotic Tirade - 10/29Antonio Buehler Found Not Guilty After Almost 3 Years - 10/30"Crush the Seed of Ishmael": A "Final Solution" to the "Muslim Problem" - 10/09

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat
(more)

 
Top