It’s good to hear Krugman speak and respond to questions. The thrust of this discussion is that the opposition to the stimulus is a visceral reaction, not an intelligent one. Although some guests early on questioned the empirical efficacy of the stimulus, we did really not hear from any Thomas E. Woodses or any Peter Schiffs who maintained, in quite an intellectual fashion, that the stimulus is simply bad economic policy. Krugman remarks toward the end that he doesn’t see stimulus jobs as “makework” jobs. I do not understand how this position can be honestly defended alongside the position that we now need government to “boost aggregate demand”, i.e. create demand where none existed before. What is the purpose of the stimulus if it is not to “make work”? If these were not “makework” jobs, we would do them anyway. We would not need an economic crisis as a pretense for passing $700 billion spending bills. For a response to the assertion that Roosevelt’s slashing of the deficits caused a recession in 1937, see this. For a response to the assertion that World War II spending lifted the U.S. economy out of the depression, listen here, starting at 32:17. Read the rest of this entry »
Thirty-six state governments require a “certificate of need” before a new hospital may be built in a given area, thereby directly inhibiting the growth of the supply of medical services and increasing the cost of medical care. Where’s the outrage? Next week: Certificate of Need Pro/Con. Read the rest of this entry »
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