“Russ Roberts didn’t like it either. It’s true I’ve pretty much given up on Russ, but I thought this post was especially bad.”
May 23, 2012 § 1 Comment
Krugman had a post recently looking at Irish austerity. I liked it better than most because it basically said “hey – the Irish are doing austerity“, rather than trying to make any kind of multiplier point which, as I said above, I’m uncomfortable with. Bob Murphy didn’t like it. Russ Roberts didn’t like it either. It’s true I’ve pretty much given up on Russ, but I thought this post was especially bad. Krugman seemed to be saying two correct things: (1.) that the increase in spending in Ireland earlier in the crisis was the bank bailouts which may or may not be a good financial rescue package, but certainly isn’t what we typically think of as Keynesian stimulus, and (2.) welfare program growth has not been due to any alterations of the welfare state. Russ seemed to think he said that welfare program growth does not count as stimulus. I still can’t find where he said that. I emailed Bob about it and I think it’s a difference in interpretation (and of course, I think what I think is clearly right).