Guess what? Paul Samuelson hates me
From the German magazine Spiegel:
Libertarians are not just bad emotional cripples. They are also bad advice givers. I refer of course to the views of both Milton Friedman and Friedrich Hayek. The “serfdom” they warn against is not that of Genghis Khan or Lenin-Stalin-Mao or Hitler-Mussolini. Rather, they warn against the centrist states of the modern world. Think only of Switzerland, Britain, the US, the Scandinavian countries, and the Pacific Rim. Why do citizenries there report high indexes of “happiness” and enjoy broad freedoms of speech and belief?
Don't hold back Paul. Let it out, bro.
using markets is not the same thing as unregulated capitalism so beloved by libertarians. Such systems cannot regulate themselves, either micro-economically or macro-economically. Wherever tried they systematically breed intolerable inequalities. And instead of such inequality being the necessary price to encourage dynamic progress via technological and managerial innovations, it instead breeds dysfunctional shortfalls in what economists call "total factor productivity."
Huh? Did anybody get that? Bueller?
If what we've seen in the US the last 15 years is "unregulated capitalism", libertarians DON'T love it.
And how in the world does inequality "breed disfunctional shortfalls" in TFP?
May I take this opportunity to remind everyone that measured TFP is a residual that is correlated with a lot of stuff that technological progress shouldn't be correlated with?
Guess I won't be getting invited to his 100th birthday party.
Labels: they be hatin'