Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Businessmen and Economics

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Editorials & Other Articles Donate to DU
 
dtotire Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-10-12 02:30 PM
Original message
Businessmen and Economics
Paul Krugman - New York Times Blog
January 10, 2012, 10:37 am
Businessmen and Economics

A brief thought on something Ill try to expand on later. Leaving aside all the questions about what Mitt Romney did or didnt do at Bain and about his self-aggrandizing double standard theres an even broader question: why does anyone believe that success in business qualified someone to make economic policy?

For the fact is that running a business is nothing at all like making macro policy. The key point about macroeconomics is the pervasiveness of feedback loops due to the fact that workers are also consumers. No business sells a large fraction of its output to its own workers; even very small countries sell around two-thirds of their output to themselves, because that much is non-tradable services.

This makes a huge difference. A businessman can slash his workforce in half, produce about the same as before, and be considered a big success; an economy that does the same plunges into depression, and ends up not being able to sell its goods. Nothing in business experience prepares one for the paradox of thrift, or even the inflationary impact of increases in the money supply (which is real when the economy isnt in a liquidity trap.)

And I havent even mentioned the fact that presidents need to work with Congress, and face far more limits on their authority than CEOs.

The idea that what America needs now is an executive type is just foolish.
Refresh | +3 Recommendations Printer Friendly | Permalink | Reply | Top
dtexdem Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-10-12 03:11 PM
Response to Original message
1. Yes, but then almost everything the Repukes propose is foolish.
And the rest is just dumb.
Printer Friendly | Permalink | Reply | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Tue Jul 29th 2014, 05:56 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Editorials & Other Articles Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC