How to debate Paul Krugman: “Ask questions like a child”. “Explain to me how increases in paper pieces can possibly make a society richer. If that were the case, explain to me why is there still poverty in the world? Isn’t every central bank in the world capable of printing as much paper as they want? Please explain to me how a piece of paper can make society richer.” Well, outside of the minor flaw of being useless, the concept is perfectly sound…

{ 25 comments… read them below or add one }

Not so silent January 26, 2013 at 9:26 pm

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Looks like Hans was having a battle of wits with an unarmed man (Krugman)

That Guy January 26, 2013 at 9:49 pm

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There should be a designated congressional 10-year-old. Every bill must be written in language the kid could understand. If he doesn’t understand it the bill is tossed out.

poppajoe49 January 26, 2013 at 10:53 pm

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Good job for Krugman!

Alien January 27, 2013 at 10:31 am

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Designated congressional 10-year old made me laugh in the parking lot.. Well done

flashingscotsman January 27, 2013 at 9:59 pm

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If the designated 10-year-old has to EXPLAIN the bill to any Congressman, that Congressman is immediately dismissed.

Progressive Hemrrhoid January 27, 2013 at 5:28 am

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Anybody who takes financial advice from a self centered poltroon like Krugman deserves to go broke.

Kip Hooker January 27, 2013 at 6:45 am

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Hans Hermann-Hoppe is on dead on . . . Krugman always wrong. He didn’t predict the crash. He was wrong about the effects of the bailouts and porkulus spending. And anybody that has been to the grocery store over the last four years knows full well that despite what the Feds assure us we have been hit with massive inflation. Something Krugman assured us we either do not have to worry about or would not be adversely affected by. Well guys like Krugman might not be hurt by the cost of living increase that he doesn’t believe will occur (or will somehow mysteriously lead to higher wages) but the common productive members of this country sure have felt the sting.

danybhoy January 28, 2013 at 4:29 am

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This scene illistrates perfectly the difference between guys like Krugman or Robert Reich who live in academia, but starve to death if they had to make their theories work in the real world…

http://www.youtube.com/watch?v=YlVDGmjz7eM

…still love it, & it’s the truth.

poppajoe49 January 28, 2013 at 5:31 am

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He wouldn’t starve, he’s go right to the food stamp office!
One thing about leftist economists, they have no problem taking our money.

sa_rose January 31, 2013 at 1:17 pm

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Well since they don’t count obvious things like groceries and utility bills and rent/mortgage costs when they figure the rate of inflation. . . .

JPTravis January 27, 2013 at 8:56 am

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Ohmygod I love that video! I’ve always been a firm believer in common sense. Most eceonomists are full of crap, modern day astologers advising the king and trying to look impressive with a bunch of hocus pocus. This guy hits the nail on the head.

Alien January 27, 2013 at 10:29 am

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The problem is the welfare state.. I get paid in fiat, and am able to buy food and useless tech with it. I bought a Keurig this morning because I’m a lazy ass. Now I have to suss out where to get the reusable coffee pods.

I am essentially tricked into working for paper because I am part of a network that excepts it. But the system demands we work to play along– that is, create wealth before we push the money supply down the line.

Chronic welfare short circuits the wealth creation bit

Sidekick January 27, 2013 at 10:56 am

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Which, I suppose, is the reason for his constant refrain of more stimulus because in his Keynesian world view that will get the economy and thus the job market moving. If only he had one ounce of historical evidence to support his position.

PsychoDad January 27, 2013 at 11:27 am

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I’ve said this before — ANY economy, outside of barter, is basically agreeing to SOME sort of “fiat” currency. Gold ingots have little value except that which we assign to them, and almost no practical value, it is almost purely decorative, and until it started getting used in electronics, was entirely decorative. Yes, it has some excellent qualities for being a decoration — doesn’t tarnish, soft and easy to work with, malleable to ridiculously thin leaf — but if it wasn’t scarce it would be no more valued than plastic, which has all the same qualities.

So the problem with paper money isn’t that it’s paper. It’s quite simply a question of too much being made available. The total amount of currency must slowly increase, or an economy stagnates and wealth does become a zero-sum game — you only get rich by me being poorer. This is all straight out of Ayn Rand by the way, except that she was a gold-fetishist.

DefHarryMelon January 27, 2013 at 4:12 pm

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Gold is a very useful element, far more industrial, medical and tech uses in volume of greater significance than you’re indicating. Its value as a decorative material hardly applies to the value it has due to its inherent properties. To compare it to plastic is really ludicrous.

Alien January 27, 2013 at 7:31 pm

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I think PsychoDad’s point stands if you go back in time, before the advances you mention. What use was it to the ancients, beyond malleability, ductility, shiny yellowishness, and rarity? Like silver, which i’m guessing is less rare, its greatest quality was bring designated currency. The designation may have been more a cultural and collective fiat.. whatever you call it, it was arguably as arbitrary (nearly so, at least).

And subject to inflation too. I remember reading of Byzantium being affected by inflation, and imperial coffers suddenly full, due to what historians decided was discovery of a productive and secret imperial silver mine. Would’ve been in Norwich’s books. I’ll have to find that

Sidekick January 27, 2013 at 7:35 pm

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When the Spaniards filled their galleons with gold from the New World and returned to Europe, they crashed the economy of almost the entire continental economy.

sa_rose January 31, 2013 at 1:19 pm

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And a good portion of that gold never made it to Europe, thanks to poor sailing, bad weather and pirates!

MDLION January 31, 2013 at 1:27 pm

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sa_rose:”pirates”

Here are some pirate jokes for anyone interested.

Why didn’t the pirates at sea take a bath?
Because they were gonna wash ashore.

What are the average grades of pirates?
High C’s.

Why didn’t the pirates out at sea play cards?
Because the captain was standing on the deck.

What is the favorite letter of pirates?
Rrrrrrrrrrrrrrr!

poppajoe49 February 1, 2013 at 5:02 am

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*GROAN*
;-)

sa_rose February 1, 2013 at 11:51 am

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I love it!

Kip Hooker January 27, 2013 at 3:51 pm

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@Alien

The Keurig is awesome, especially for green tea. I got my solo refill cup for it at Home Depot.

Alien January 27, 2013 at 7:33 pm

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Good tip..! Never would’ve occurred to me. All i’d seen was as-seen-on-TV type commercial. Love Home Depot

poppajoe49 January 27, 2013 at 7:35 pm

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They also have them at Wal Mart and K Mart.

perlcat January 31, 2013 at 3:20 pm

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There are at least 3 designs. The best one for tea is the one that replaces the holder itself — it has a wire mesh basket that fits inside. Holds more tea, has a flat-bottomed basket. The worst is the one I got at Target, that has a little sump in the bottom of the basket. Tea gets in it, swells, and is a pain to clean out.

The best green tea (personal opinion) is Temple of Heaven Gunpowder tea — good flavor, and in granules like that, brews better.

I love me Keurig. Arrr.