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Niall Ferguson on the "Deficits Forever" Club
The British economist/historian Niall Ferguson,
who has become an inflation
town crier and imperial
pessimist, has a
Daily Beast column out pushing back against Krugmanite
critiques of European austerity budgets.
Members of the Deficits Forever club are intellectually lazy when they assert that the U.K. economy is growing slowly because austerity doesn't work, implying that things would be better had the spending binge continued. Maybe. But maybe not. A responsible politician wouldn't take the gamble because the costs of being wrong are too high. Just ask the Greeks.
The real lessons for the United States are clear. Those who run up debt in good times can borrow only so much more when a recession strikes. And heavily indebted governments postpone fiscal stabilization at their peril. If you wait to reform until the bond market calls time, you are—to use a technical term from economics—screwed.
The best option is, of course, to be Switzerland, a country strangely ignored by Krugman. The Swiss have run a prudent fiscal policy throughout the economic crisis. They have had a structural surplus in each of the past five years. Their net debt is actually lower today than it was in 2005. And guess what? In 2009 their economy suffered the smallest contraction in Europe, with unemployment today below 4 percent. As for sound money, the Swiss franc is up 95 percent against the dollar since 2000.
Whole thing here; link via Instapundit. Reason on how government can be cut (while actually improving the economy) here and here and here.
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|5.31.11 @ 10:31AM|#
In 2009 their economy suffered the smallest contraction in Europe, with unemployment today below 4 percent. As for sound money, the Swiss franc is up 95 percent against the dollar since 2000.
Switzerland is a third world country. Their people live like wild animals. Who cares what they do?
|5.31.11 @ 10:35AM|#
It is just like Somalia. How many times do I have to ask you guys, do you want to live in Somalia?
Spiny Norman|5.31.11 @ 12:02PM|#
But they have trains in Switzerland. Trains.
cynical|5.31.11 @ 3:11PM|#
No, but Switzerland would be nice.
Chip Diller|5.31.11 @ 10:32AM|#
All is well!
Tony, Shrike, help me out here guys!!!
Restoras|5.31.11 @ 10:34AM|#
Switzerland may not be much fun but they sure look like geniuses right now.
Irresponsible Hater|5.31.11 @ 10:40AM|#
Salon/Michael Lind piece today on Niall Ferguson:
http://www.salon.com/news/poli.....l_fergsuon
|5.31.11 @ 10:53AM|#
I only flicked through that, but it was strangely vicious.
pmains|5.31.11 @ 1:12PM|#
I agree. I did not at all understand what point Lind was making with the following bit.
"The Elite Turns Against Obama," screamed a recent headline in the Daily Beast.
I guess scream, in this case, means upsetting the delicate tummies of the Obama bubble children. This Niall Ferguson MUST ... BE ... STOPPED.
Gilbert Martin|5.31.11 @ 10:55AM|#
"The best option is, of course, to be Switzerland, a country strangely ignored by Krugman"
It's not strange at all for Krugman to ignore it.
Krugman and his ilk always start with the conclusion they want and work backward from there to gin a rationalization for it.
Kroneborge|5.31.11 @ 3:01PM|#
+1
|5.31.11 @ 11:01AM|#
lol, OK like we didnt see that coming.
www.privacy-web.no.tc
|5.31.11 @ 11:05AM|#
The Swiss? The only thing they've ever produced is ... the cuckoo clock!
|5.31.11 @ 11:08AM|#
The only thing they've ever produced is ... the cuckoo clock!
Seriously, they never even invaded anybody worth mentioning, why would we want to emulate them?
|5.31.11 @ 11:55AM|#
I really cannot recommend reading the comments at the Daily Beast. The level of discourse is dumber than what you can read at the NYT. REPUBLICANS ARE EVIL AND HATE AMERICA. NUH UH, YOU ARE! *headdesk*
Pauly K|5.31.11 @ 12:48PM|#
Fuck Niall Ferguson. How many Nobel prozes does he have?
Trespassers W|5.31.11 @ 1:39PM|#
"We're sick of the Swiss!"
"We don't like 'em."
Trespassers W|5.31.11 @ 1:40PM|#
"It's time. It's time.
(checks watch)
It's time to hate the Swiss."
H man|5.31.11 @ 1:58PM|#
You know who else ignored Switzerland?
chaussures nike shox|6.1.11 @ 2:36AM|#
thank you