Monday, 6 January 2014

Dimwit Lawrence Summers has now realised that raising demand raises numbers employed.

Summers now seems to have retreated from his “secular stagnation” thesis, and is now suggesting that raising demand will employ more people. Amazing. But that’s no more than Keynes said about 70 years ago.

I’m waiting with baited breath for Summers’s next pearl of wisdom. Perhaps he’ll announce that water is wet, or that grass is green. Let’s see.

H/t to Mike Norman.


P.S. (same day). Stop press: Summers has an article in the Financial Times today entitled “Washington must not settle for secular stagnation”. Er…. now who was it that first proposed the “secular stagnation” idea? None other than Lawrence Summers (on the 8th November last year in a speech at the IMF). In academia (and indeed in every pub in the country) respect is awarded to those who produce ideas which stay in place for significant periods, despite criticisms thrown at such ideas. As to those who contradict their own ideas a mere two months after first producing them, why should we listen to them? Why do they get articles published in the FT?

I must remember talk self-contradictory bullshit in future: obviously that’s the way to fame, fortune, academic preferment, and getting articles published in the FT.


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