Read this. Then read this. The first is Paul Krugman praising Argentina’s “economic model” of plundering, theft and deception, claiming its performance has been comparable to Brazil’s. The second is Juan Carlos Hidalgo’s response pointing out that Krugman (1) uses Argentina’s official inflation numbers, which economic journals have stopped using because they are transparent lies; (2) starts his analysis two years after Argentina’s recession began; (3) compares Argentina with a relatively poorly-performing country (10 South American countries have done better); and (4) ignores that Argentina’s growth, such at is, is about to blow up in their face.
A bit more about that last point, since it’s relavent to the “spend yourself to prosperity” policies that Krugman and the Left are embracing for America and the Euro Zone. Inflating economies can give the illusion of prosperity. But it always end the same way — with a massive hangover. In the 1960’s and 70’s, the US deliberately inflated its currency because of a Keynsian piece of bullshit called the Phillips curve. It blew up in our face under Carter and we had to endure a brutal hangover once Volker got things under control. Argentina’s economy is already cracking: I noted earlier their nationalization of a Spanish oil company and their saber-rattling on what Obama calls “the Maldives”. These are not the actions of a country experiencing real economic growth.
Back to Krugman. This is not an isolated incident. He is frequently factually challenged. He asserts the Euro-zone is “slashing spending” when spending is flat (and rising outside the PIIGS). He claims Hoover slashed spending when Hoover increase spending 80% in response to the Depression and was denounced by FDR for being a socialist. As we saw in the debate with Ron Paul, he ignores the post-War prosperity that followed Truman’s massive spending cuts.
And he’s one of the most influential liberals in the country. It just goes to show that fact don’t matter when you’re telling people what they want to hear.