The biggest threat to the world economy may not be from inflation, deflation, the Fed, China, the Middle East, or Wikileaks. It may be from the continued attempts by certain influential people who still suffer from the the delusion that government activism, high taxes, regulation, and unions are the key ingredients to prosperity.
Their ringleader is Paul Krugman, which makes him possibly the most dangerous man in the world. His toxic thinking and the people who follow him will drive us right off a cliff into the misery that was so well documented nearly 70 years ago by Friedrich Hayek in “The Road to Serfdom.” If you haven’t read the “The Road to Serfdom,” it basically lays out the reasoning for why Paul Krugman and his followers are insane.
The really insane part is that you don’t need to be an economist, or even go to college, to understand why Krugman and his Keynesian and socialist colleagues are out of their minds. There is no common sense or logic to their ideas.
How does raising taxes, preventing people from doing business, giving government more control of the economy, and putting more people under the control of unions make a society better off? Of course it doesn’t. The appeal of Krugman’s philosophy is clear to government officials, bureaucrats, union bosses, regulators, socialists, and economists who need to justify their existence.
Beyond that highly influential group, his ideas wouldn’t pass muster in an elementary school social studies class.
Yet he is constantly given air time and taken seriously by the media.
Let’s have a head to head televised national debate between Mr. Krugman and a real economist (anybody from the University of Chicago, Hoover Institution, Cato Institute, or American Enterprise Institute would be fine) and see who wins.
Although it’s kind of unfair to subject even Krugman to such a horrendous public humiliation, maybe that’s what it takes to finally get people to see what a joke this man really is and relegate his nutty ideas to the ash heap of history along with the Soviet Union, Maoism, Leninism, Stalinism, and fascism.
It worked with Ross Perot if any of you remember how even a mediocre debater like Al Gore destroyed him on Larry King years ago. Until then, many people actually thought Ross Perot made sense. It wasn’t until his ideas were challenged head to head in a public forum and he was forced to defend his statements with logic and common sense that he was exposed for the nut that he is.
Krugman deserves the same hearing, and I believe the result will be the same. He will no longer be taken seriously because people will see that he cannot effectively defend his positions when they are directly challenged by someone who actually understands the issues.