131 online
Most Popular Choices
Share on Facebook 10 Printer Friendly Page More Sharing
OpEdNews Op Eds   

Krugman dead wrong!

By       (Page 1 of 3 pages)   9 comments
Message Mike Tower
Become a Fan
  (2 fans)

May 12, 2013

Krugman theoretically right, but still wrong!

New York Times Columnist, Paul Krugman has superb academic qualifications. After all, he is currently Professor of Economics and International Affairs at Princeton, and Centenary Professor at the London School of Economics. On top of all of that he won a Nobel prize in Economics in 2008.

While not coming close to being as academically qualified as the good professor, I did have a 38-year career mainly in executive positions in five different industries. Thus, I spent my career implementing theories in "the real world". I often observed the ideas of some very smart people failing miserably because, while theoretically sound, they simply didn't work. After all, isn't a theory by definition an idea waiting to be tested?I

On April 28, Krugman had an article in the opinion section of the New York Times advocating increased borrowing and spending, as stimulus to spend our nation out of its current economic malaise. Having heard the "would any reasonable family do this" question, he goes to great efforts to point out differences between a family continuing to borrow when deeply in debt, and a government doing the same.

The two biggest differences I see between a family and a nation's government with too much debt are: 1. A family's debts are usually discharged at the death of those who created them. A government, on the other hand, can always pass debt on to future generations. 2. While families cannot print more money, or borrow almost unlimited amounts, a government can. These government options though do not come without potentially negative side effects.

I somewhat agree with his beliefs our government should not risk reducing borrowing and spending as long as our economy remains so fragile. However, I would like to see reductions in wasteful government spending which is so prevalent. But, not reducing borrowing and spending is far different from his suggestions to massively increase both. As the old saying goes: When you find your self deep in a hole, the first rule is to stop digging...not dig even deeper!

I believe Krugman's advocacy for expanding government borrowing and spending is based on two flawed fundamental beliefs.

Next Page  1  |  2  |  3

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Rate It | View Ratings

Mike Tower Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Mike spent most of his working career in a variety of managerial roles in five different industries for two employers over a 38 year career. He now writes a political Op-Ed column for the Hendersonville, NC Times-News, and displays his favorites at (more...)
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Future of American Health Care

Technology has unintended consequences

Who's really to blame for illegal immigation?

The Flaw in 99 vs. 1

Illegal Immigration Part 1

OWS...another view

To View Comments or Join the Conversation:

Tell A Friend