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Old 06-08-2012, 01:01 AM
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Default Estonia vs Paul Krugman - Does Austerity Work?

Estonia and Austerity: Another Exploding Cigar for Paul Krugman International Liberty
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Old 06-08-2012, 02:07 AM
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Default Re: Estonia vs Paul Krugman - Does Austerity Work?

Should give a little more than just a link...
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Old 06-08-2012, 02:33 AM
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Default Re: Estonia vs Paul Krugman - Does Austerity Work?

Oh all right, it's like this.

On June 5 CNBC wrote this...

Quote:
Sixteen months after it joined the struggling currency bloc, Estonia is booming. The economy grew 7.6 percent last year, five times the euro-zone average. Estonia is the only euro-zone country with a budget surplus. National debt is just 6 percent of GDP, compared to 81 percent in virtuous Germany, or 165 percent in Greece. Shoppers throng Nordic design shops and cool new restaurants in Tallinn, the medieval capital, and cutting-edge tech firms complain they can’t find people to fill their job vacancies. It all seems a long way from the gloom elsewhere in Europe. Estonia’s achievement is all the more remarkable when you consider that it was one of the countries hardest hit by the global financial crisis. …How did they bounce back? “I can answer in one word: austerity. Austerity, austerity, austerity,” says Peeter Koppel, investment strategist at the SEB Bank. …that’s not exactly the message that Europeans further south want to hear. …Estonia has also paid close attention to the fundamentals of establishing a favorable business environment: reducing and simplifying taxes, and making it easy and cheap to build companies.
News Headlines

On June 6 Keynesian economist Paul Krugman wrote this...

Quote:
Since Estonia has suddenly become the poster child for austerity defenders — they’re on the euro and they’re booming! — I thought it might be useful to have a picture of what we’re talking about. Here’s real GDP, from Eurostat:

So, a terrible — Depression-level — slump, followed by a significant but still incomplete recovery. Better than no recovery at all, obviously — but this is what passes for economic triumph?
Estonian Rhapsody - NYTimes.com

This pissed the President of Estonia off an he went to Twitter-war with Krugman. That's described here.

President Of Estonia Slams Paul Krugman: 'Smug, Overbearing & Patronizing'

The most damning thing about Krugman's post was this graph...



OK, so the article I posted went into all that including countering Krugman's graph, which turns out to be a sneaky one.

Quote:
My negative reaction is that Krugman is very guilty of cherry-picking data. If you look at the chart that accompanies his post, Estonia’s economic performance isn’t very impressive, but that’s because he’s only showing us the data from 2007-present.

The numbers are accurate, but they’re designed to mislead rather than inform (sort of as if I did a chart showing 2009-present).

But before exposing that bit of trickery, there’s another mistake worth noting. Krugman presumably wants us to think that the downturn coincided with spending cuts. But his own chart shows that the economy hit the skids in 2008 – a year in which government spending in Estonia soared by nearly 18 percent according to EU fiscal data!

It wasn’t until 2009 that Estonian lawmakers began to reduce the burden of spending. So I guess Professor Krugman wants us to believe that the economy tanked in 2008 because of expectations of 2009 austerity. Or something like that.

Returning now to my complaint about cherry picking data, Krugman makes Estonia seem stagnant by looking only at data starting in 2007. But as you can see from this second chart, Estonia’s long-run economic performance is quite exemplary. It has doubled its economic output in just 15 years according to the International Monetary Fund. Over that entire period – including the recent downturn, it has enjoyed one of the fastest growth rates in Europe.


Estonia and Austerity: Another Exploding Cigar for Paul Krugman International Liberty

Bet you wish you'd just clicked the link now, don't ya?

Apparently austerity helped other countries get through the economic crash as well.

Spending Restraint Works: Examples from Around the World International Liberty
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Old 06-08-2012, 02:40 AM
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Default Re: Estonia vs Paul Krugman - Does Austerity Work?

Paul Krugman gets way too much respect. He doesn't deserve it. He's the poster boy for why nobel prizes are a load of socialist crap. lt isn't just the peace prize.
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Old 06-08-2012, 02:53 AM
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Default Re: Estonia vs Paul Krugman - Does Austerity Work?

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Originally Posted by Infidel Dog View Post
Paul Krugman gets way too much respect. He doesn't deserve it. He's the poster boy for why nobel prizes are a load of socialist crap. lt isn't just the peace prize.
Our famed "Peace prize" winner (after being in office 20 seconds) has a policy of drone-striking not only their target, but anyone in a 100-foot radius, which has included innocents...
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Old 06-08-2012, 04:21 AM
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Default Re: Estonia vs Paul Krugman - Does Austerity Work?

When Progs pull that phrase "most economists..." out their butts I always think of Paul Krugman, then just shake my head. What else can you do. Most likely it was just Krugman, or maybe the guy who claimed Obama doesn't waste money.
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Old 06-08-2012, 06:09 AM
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Default Re: Estonia vs Paul Krugman - Does Austerity Work?

Quote:
Originally Posted by Infidel Dog View Post
Oh all right, it's like this.

On June 5 CNBC wrote this...



News Headlines

On June 6 Keynesian economist Paul Krugman wrote this...



Estonian Rhapsody - NYTimes.com

This pissed the President of Estonia off an he went to Twitter-war with Krugman. That's described here.

President Of Estonia Slams Paul Krugman: 'Smug, Overbearing & Patronizing'

The most damning thing about Krugman's post was this graph...



OK, so the article I posted went into all that including countering Krugman's graph, which turns out to be a sneaky one.





Estonia and Austerity: Another Exploding Cigar for Paul Krugman International Liberty

Bet you wish you'd just clicked the link now, don't ya?

Apparently austerity helped other countries get through the economic crash as well.

Spending Restraint Works: Examples from Around the World International Liberty

Nice Job
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