According to Nobel Prize-winning economist and former New York Times columnist Paul Krugman, economic slumps with high unemployment are caused by people saving too much instead of spending, and the proper response is for the government to step in and spend more.
I recently joined my colleague Keith Knight in a livestream to debunk that nonsense!
Knight is the Managing Editor of The Libertarian Institute, where I am a Research Fellow. Watch us efficiently dissect Krugman’s economic fallacies in this entertaining and highly educational discussion:
Also mentioned during our discussion was my 2012 book Ron Paul vs. Paul Krugman: Austrian vs. Keynesian Economics in the Financial Crisis. If you’d like to learn more about how the Federal Reserve’s inflationary monetary policy caused the housing bubble that precipitated the 2008 financial crisis, this book is for you!
You’ll learn how “crazy” Ron Paul accurately warned as early as the year 2000 how the Fed’s policy of pushing interest rates artificially low would cause a housing bubble, and how “wise” Paul Krugman advocated that same Fed policy specifically to fuel a housing boom.
