Saturday, January 10, 2009

Mish on Krugman

Mike Shedlock blasts Paul Krugman for maintaining his "hangover theory", 29 December 2008. CV Myers and Henry Hazlitt demolished Keynesianism over 30 years ago. Mish also has a link to a Fred Thomson video worth seeing. Link:


Anonymous said...

Fred has got that folksy "you can understand this sham" thing...

It's very effective...

Who are CV Myers and Henry Hazlitt?

Independent Accountant said...

Henry Hazlitt, 1894-1993, was an American economist I was first exposed to in about 1965. He used to write for Newsweek. Books of his I've read are:
Economics in One Lesson, 1946.
Will Dollars Save the World, 1947.
Failure of the New Economics, 1960.
What You Should Know About Inflation, 1960.
Man vs. The Welfare State, 1969.
The Conquest of Poverty, 1973.
The Inflation Crisis and How to Solve It, 1978.
From Bretton Woods to World Inflation, 1984.
If you read these books and still thinks Keynes was anything other than a charlatan, you have a problem.

CV Myers was a Canadian investment analyst. CVM has a vicious parody in one of his books with Hubert Humphrey asking Lyndon Johnson to explain the New Economics. If you can find it, it's a scream. I forget which of his books it's in. I must have read it about 30 years ago. He wrote books like:
World Rollover, 1985.
Money and Energy, 1980.
The Coming Deflation, 1976.
In 1973, when the Dow was at 1,000, CVM wrote a piece for Barron's titled, "Prophet of Doom". In it he said inflation was going higher and the Dow was going to 600. It fell to 578 in late 1974!

Anonymous said...

Thanks for the info on Hazlitt and Myers IA...

Would you call them Anti-Keynesians? Or are they part of another school?

Independent Accountant said...

Hazlitt is a self-described Austrian. He is about as anti-Keynes as they come.
CV Myers was an ornery old coot from Canada with a lot of "hard nosed common sense" who could spot a fairy story a mile away. He was an investment analyst by trade, not an economist. That said, he considered the "New Economics" Alice in Wonderland economics and said so.

Anonymous said...

When will Keynesian econ be overthrown... post TARP ver16.24?