Sunday, November 8, 2009

Paul Krugman's call for a "WPA"... an intelligent idiot or a misguided buffoon?

I know that Paul Krugman is an intelligent person with wonderful credentials. Plus, I hear he writes for the New York Times! He's an uber-winner in my book! I mean, my God he went to MIT and he won the Nobel Prize for his work on Free Trade (as opposed to any ground braking economic theory). Let's not question the bona fides of Mr. Krugman's mental prowess or how great he is at scrabble. I bet he kills anyone with some sweet 24 point triple word score-like talent. I do, however, question the reason and logic behind his repeated fascination with flawed Keynesian economic/big government fetishes.

It amazes me that people dismiss the facts of history and do not acknowledge the failed FDRs policies (WPA, CCC, wage and price controls, etc) which perpetuated the depression. They failed and didn't work .... yet folks like Krugman seem to think they got us out of the depression as advocated in his recent column as the path towards sustained economic growth. I mean, who would argue that trillions of dollars of government spending would be quote "cost effective". Color me a cynic I guess because I am not buying it Paulie.

While I don't have a PH.D in economics, it would not be a revolutionary analysis for me to point out that stealing money from private citizens through taxes to pay folks to dig ditches and then fill them back in would be a sane policy for our country to build wealth and create economic growth. The government is not a wealth producer. It is a wealth re-distributor. The private sector and free market are the best places to allocate resources, labor, and capital to make us a more productive society and fill the needs and wants of its citizens given limited and scarce resources. There is no way for a central planning government to recognize better than the market how best to meet the demand and supply of the market given freely floating prices and changes in preference to the consumers.

The facts I've just described are things Krugman either does not want to acknowledge or is too misguided to accept. The free market is a mutating creature that evolves constantly to adapt to human nature and the elements that drive it. While I am not an anarchist, government's role should be limited to the enforcement of our common law, provide a mechanism for commerce and free trade to flourish, execute on its limited and enumerated powers given in Article I Section 8 of the U.S. Constitution, and provide for our national defense to keep us free (as opposed to keeping us safe). It should not be the driver for creating jobs since it has no capital of its own. God knows that someone like Krugman will never advocate this so it's my duty to take up the torch and pass on this knowledge to those who will listen.

Paul Krugman... if you do by chance happen to read this, check out an oldie by Henry Hazlitt, Economics in One Lesson, since that MIT education might as well be a diploma from Disneyland based on your grasp of economic logic. There is still hope for you my friend.

No comments:

Post a Comment