How can a lie, repeated a thousand times, become the truth?
Yes, it’s true. A lie, repeated a thousand times, can become the truth. How so? Just change the definition of “truth.” (See homosexual marriage, or austerity. Human being-wise, “is-master” Bill Clinton comes to mind.)
The lie being repeated today is this: The Economic Argument Is Over — And Paul Krugman Won. How did Krugman win? Because Krugman fanboy Henry Blodget says so. And who is Blodget? He’s a banned for life financial-insider and $4 million disgorgement/fine guy whose bona fides speak for themselves.
What is the Blodget hypothesis?
…”stimulus” spending, economists like Paul Krugman argued, would help reduce unemployment and prop up economic growth until the private sector healed itself and began to spend again.
Yes, we saw how well that worked with the Democrats’ “stimulus,” did we not? And we’re still seeing it in America’s brilliant ongoing economic performance.
Blodget also says a spreadsheet error in has disqualified “austerity” and that we can continue to accumulate debt ad infinitum:
An academic paper that found that a ratio of 90%-debt-to-GDP was a threshold above which countries experienced slow or no economic growth was found to contain an arithmetic calculation error.
Once the error was corrected, the “90% debt-to-GDP threshold” instantly disappeared. Higher government debt levels still correlated with slower economic growth, but the relationship was not nearly as pronounced. And there was no dangerous point-of-no-return that countries had to avoid exceeding at all costs.
Despite Blodget’s assertions—not the same as proofs—reality suggests there are points-of-no return unless the debt accumulator, that is, national governments all around the world, decide to 1) inflate the debt away by making more money or 2) default. And there is, of course, the dread U.S. economic performance where the Obama recovery has been worse than the Bush recession.
They say economics is the dismal science. A better description would be that we have economists who are dismal pseudo-scientists. And those pseudo-scientists who can’t keep up with reality choose to write (as do those who are banned for life from the investment industry).
Oh and that “Nobel Prize for Economics” thing? A bit misleading, to say the least.