Monday, August 25, 2014

Power of Ideas

The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. ................. J M Keynes The General Theory

Economists, defunct or extant, right and wrong, have rather more power than the dentists to which Keynes suggested they should be equated.

But Krugman doesn't want to take the rap for this one:

The French Government has Collapsed And It's Partly Paul Krugman's Fault.

On Monday morning, the French government collapsed. All the ministers have resigned, and President Francois Hollande will have to appoint new ones. Paul Krugman deserves some of the blame.

The incident that immediately precipitated the resignation of French Prime Minister Manuel Valls' cabinet was an interview given by Arnaud Montebourg, France's economics minister to LeMonde, in which he protested his government's ongoing austerity policies.

As evidence of that policy's failure, Montebourg cited the former Princeton professor and New York Times columnist.

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