Tuesday, 23 April 2013

Austerity is Crap

Kruggers  has interesting information on Alesina & Ardagna.

I have written about this previously. In Oz we have this from John Quiggin. And then this as well.

Have a read of the Catallaxy thread and see how people will avoid talking about the topic.

Classical economics has failed every nation that has tried it EXCEPT  in circumstances that Keynes specified.

Funnily enough Sinclair Davidson agrees with Keynes ( although he doesn't realise it). You can only have successful austerity programs when spending falls as a % of GDP.

That ONLY occurs when the economy s healthy not when it is weak.

This is just another example of people such as Davidson, Carling, Kirchner and of course Katesy avoiding the major question.

They are all dishonest charlatans!

The R&R paper, as distinct from the book, merely adding to this dishonesty.

Postscript.
Kruggers has it right about evidence-and-economic-policy.

Austerians, for wont of another word ,are just like old fashioned communists. Forget, ignore or deny any evidence and live only for the ideology.

Postscript 2
Austerity did not get Australia out of the Depression. We nailed that Julie Novak falsehood previously

Okay I have assumed too much here.

A&A  got demolished by the IMF study ( now a working paper). Their response was a non-response.
When Carling & Krichner's piece in the AFR got severe criticism from John Quiggin their response was a non-response.

Similarly when R&R  in the latest skirrmish got criticised their response was a non-response.