I know we’ve all been over the myth that war ends the depression numerous times, but do you know of any writings on this theory from a more sociological point of view? Perhaps the malaise that invariably sets in with the hopelessness of the depression was counteracted by the motivational force of nationalism? I’m generally wary of extreme nationalist sentiment, but it is somewhat contagious. How else to you convince an entitled group to accept lower wages instead of demagoguery and the appeal of government intervention?
I ask because I’m watching an interview of Krugman and he just continually repeats the same stories and projects his own closed minded behavior onto other people, like Ron Paul. But do you think maybe the idea of a contagion effect is what keeps him going with this alien invasion, or WW2 depression cure theory?
P.S. Do the moneyed interests at Princeton and the NY Times keep him around because he believes this stuff, or because he’ll do what he’s told?
P.P.S. Woah his arrogant condescension from his ivory tower! I have family who idolize him and the welfare state. It’s almost intolerable.
Well, when the country is willing to put off consumption (ration cards, etc) and accept a lower standard of living, your economy can do wonders. China is a great example of the positive effects of delayed/repressed consumption. I’m sure a strong sense of nationalism makes it easier for the benevolent overlords to brainwash the masses.
As far as Krugman goes, he was roundly debunked by Hazlitt in 1946 and , by extension, Bastiat in 1850. If that wasn’t enough Hazlitt REALLY ripped Krugman a new one again in 1959.