Category Archives: ecomony

Smart People Say Really Dumb Things Too.

This is evidence that even Nobel Prize winners can say some pretty dumb things. Paul Krugman, a Nobel Prize winning economist says of a twitter joke about the economy and the recent earthquake:

People on twitter might be joking, but in all seriousness, we would see a bigger boost in spending and hence economic growth if the earthquake had done more damage.

If they come up with an award for the dumbest thing an ostensibly smart person had said, many will be nominating Krugman.

By this reasoning, we should be seeing “a bigger boost in spending and hence economic growth” in Japan in 3..2..1..

Oh wait, that never happened, and may never be likely to happen in the aftermath of such an event.

Krugman’s analyses, just like the one where he asserts that governments can borrow unabated without affecting interest rates, are always scarcely based on
historical facts.

I think this is generally the problem in the world of economists today; it doesn’t matter what they’ve got monumentally wrong, and in what frequency, everything will eventually evenĀ out as long as they get something right, which is bound to happen at some point with all that guessing.

(Update: It’s been pointed out that the Krugman Google plus account which made the inane claim may be a fake.)