It is incredibly complicated to estimate the total "social cost" of a government policy. Ultimately, this difficulty stems from the fact that costs really only make sense in terms of an individual's subjective preferences. In that respect, costs cannot be aggregated.
Hundreds of fans of the Austrian School are joining the campaign, because they realize the wonderful corner into which Krugman would be painted. He will either have to debate Austrian business-cycle theory or explain why a New York City food bank would miss out on $100,000+ in "right-wing" money.
We've only had 294 failures this cycle, but it is a big deal: adjusted to current dollars, the Depression banking crisis was $100 billion, the S&L crisis was $923 billion, and the current crisis is nearly $8 trillion.
What if a president took a different direction and sought popularity by expanding rather than reducing liberty? There is a model here they could follow, but it is not one you have thought of. It is Franklin D. Roosevelt.
Even though these economists — especially Diamond — are very smart and productive, they and their colleagues have hardly helped the plight of the unemployed, as we stumble ever deeper into depression.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 9 October 2010.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 9 October 2010.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 8 October 2010.
Recorded at the Ludwig von Mises Institute; Auburn, Alabama; 8 October 2010.
Despite the chorus of praise, the TARP bailout was a terrible idea that will cost taxpayers both directly and indirectly through its perverse incentives. Only the Austrians consistently opposed the Republican and Democrat bailout schemes.
