Wednesday, March 4, 2009
Mankiw vs. Krugman
Speaking of Greg Mankiw, it looks like Mankiw has thrown down the gauntlet: He wants to make a wager with liberal economist Paul Krugman on just how much the economy will grow (or how not) under the auspices of Obama's economic plan. Liberals love to back up their economic arguments with Krugman's critique of free-market capitalism; they figure that his recent Nobel Prize lends plenty of weight to their economic policies. But I always point out that Krugman's Nobel Prize winning work was in international trade and not macro-economics: He's basically a Keynesian when it comes to macro-economics. And there is far too much empirical and historical evidence that shows that Keynesianism doesn't provide the robust growth that our country needs to maintain our standard of living. I would love for Krugman to take Mankiw's bet.