In an historic dismantling, Economic Historian Niall Ferguson exposes once and for all the truth of progressive economist, Paul Krugman. We thought we’d share this dismemberment of the leading progressive voice of statist economics with our readers, one lovely part at a time. So keep watching- we will be exposing Krugman’s destruction at the hands of Niall Ferguson over the next few days. This is part two:
Much Bigger Than The Shutdown: Niall Ferguson’s Public Flogging Of Paul Krugman
- After Ferguson’s prosecution and execution there isn’t really enough of Krugman left to bury. Yet in case you missed it … let us reprise, and celebrate, the event. The essence of Ferguson’s argument nicely is summed up in Part 3:
I am not an economist. I am an economic historian. The economist seeks to simplify the world into mathematical models – in Krugman’s case models erected upon the intellectual foundations laid by John Maynard Keynes. But to the historian, who is trained to study the world “as it actually is”, the economist’s model, with its smooth curves on two axes, looks like an oversimplification. The historian’s world is a complex system, full of non-linear relationships, feedback loops and tipping points. There is more chaos than simple causation. There is more uncertainty than calculable risk.
The most that we can do in this unpredictable world is read as widely and deeply as we can, think seriously, and then exchange ideas in a humble and respectful manner. Nobody ever seems to have explained this to Paul Krugman. There is a reason that his hero John Maynard Keynes did not go around calling his great rival Friedrich Hayek a “mendacious idiot” or a “dope”.