I stopped reading
fiction books or watching fiction movies a long time ago. I even
stopped reading mock-news comedy sites like theonion.com. Why? Because
none of them can compare to the insanity of real life.
Take this one,
as example. The prince of peace, Barack Obama, nominated a new man
to head the "White House Council of Economic Advisors"
I have to admit,
for a split second I almost leapt off my balcony to the beach 29
floors below! I thought it said that Krugman Paul Krugman had
been nominated to be Barack Obama's top financial advisor!
that Paul Krugman has been lobbying for war to get the economy working
and his latest scheme that he drew up in his lab was to fake an
alien attack (see "Krugman's
New Extraterrestial Economic Plan For America") so we could
put everyone back to work building light sabers and plasma rays.
Then, after everyone had spent a few years focusing all their efforts
on that he would announce that it was all just a grand ruse to "get
the economy going". In his mind, we'd all fawn over him for
coming up with such a great way to get us all back to work! Sure,
we spent two years destroying incalculable human and natural resources.
But, hey, that's better than not having anything to do, right?
I had misread and it wasn't Paul Krugman.
It was Alan
Krueger... a man who has been working in the White House for two
years and who has his doctorate in Keynesian Economics from Harvard
I knew, just
from reading that he had his PhD from Harvard that he would be a
moron. That's just a given with those "credentials".
myself in (to ensure I wouldn't throw myself off my balcony) and
began reading his list of "accomplishments".
It starts by
saying that he wrote a book whose mission was to convince people
that raising the minimum wage does not increase unemployment.
I was strapped in tight! Are you kidding, Krueger? I can refute
your entire book in one sentence and there is no rational thing
you can say in response. Ready?
If that is
true then raise the minimum wage to $1,000/hour and tell me how
that will not result in unemployment rising to 99.5% or higher.
At that rate, only people currently making more than $1,000/hour
would be employable.
I mean, really.
This is Obama's new senior advisor?? This will probably shock him
then, but removing the minimum wage completely would result in full
employment. Heck, I'd even hire Alan Krueger to wash my car all
day long for $0.15/hour. That may be something he is actually good
he has accomplished something in his career... let's read on.
The next big
thing he is known for is being "instrumental in the cash-for-clunkers
Yes, what a
stroke of genius that was! Let's offer heavily indebted Americans
incentives to trade in their perfectly good, working used cars and
to go further into debt to buy new cars. Then, let's take the used
cars and destroy them. Yes, good, working cars... throw them on
a scrap heap. Net result? Americans are more indebted and hundreds
of thousands of good cars are destroyed (causing the price of used
cars to rise 20% btw).
next masterpiece? Cash for Houses? Anyone with an older house that
they have paid off can call the government and have them come and
burn it to the ground and then offer them incentives to buy a new,
much more expensive house that they can't afford! This keynesian
economics stuff is easy! I'm surprised anyone even has to go to
Harvard for this. Just pick something... anything. Destroy it and
have the government write you a cheque for doing so!
failed 20 years ago this month. It failed because it made the incorrect
assumption that the economy can be managed from the top down by
a bunch of propellerheads with mathematical equations.
and the Austrian school of economics was right. It continues to
be right and will always continue to be right. However, politicians
and the public in general don't like the message. The message is
that there is no free lunch. Now, the lure of trying to centrally
manage an economy has made a great comeback. This time, in the U.S.S.A.
of Alan "Freddy" Krueger only ensures that the Nightmare
on Pennsylvania Avenue will continue on to the bitter end.
in real assets, gold, silver, precious metals stocks and internationalizing
our assets, especially outside the US, continues to be the most
rational of choices.
Berwick [send him mail]
is an anarcho-capitalist freedom fighter and Chief Editor of the
libertarian, Austrian economics grounded newsletter, The
Dollar Vigilante. The Dollar Vigilante focuses on strategies,
investments and expatriation opportunities to survive & prosper
during and after the US dollar collapse.