Saturday, March 6, 2010

Krugman and Economic Theory

Paul Krugman, Nobel Prize Winner for Economics, is, unfortunately, also a liberal and when push comes to shove he applies liberal faith instead of scientific integrity. He recently accused Sen. Kyl of ignoring textbook economics when Kyl said that unemployment benefits tend to prolong unemployment. But that is exactly what Krugman and his wife said in the textbook that they wrote:

"Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker's incentive to quickly find a new job. Generous unemployment benefits in some European countries are widely believed to be one of the main causes of "Eurosclerosis," the persistent high unemployment that affects a number of European countries."

It is unfortunate that a scientist like Krugman would write a book called: The Heart of a Liberal.
Is he a scientist or a liberal?

http://www.powerlineblog.com/archives/2010/03/025752.php

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