In response to:

Is Anybody Surprised that Krugman Was Wrong about U.K. Fiscal Policy?

buster33 Wrote: Jan 24, 2013 5:04 AM
Most excellent response. If more people understood the concept of opportunity cost we would not get so much counterproductive government spending. The "multiplier effect" justifying stimulus spending ignores the negative multiplier effect on those who no longer have the resources government has commandeered. Keynes asserted "in the long run we're all dead." That long run is now the present and our country is dying from the cancers of national debt and unfunded liabilities.
cjurgens Wrote: Jan 24, 2013 12:16 PM
I'm far from being well-read in economics, but I've always wondered about the logic of taking away money from individuals so they cannot spend it, and then thinking that spending that same money by the government somehow stimulates the economy in some beneficial way that use by the individual could not. Good to know that at least it has a name- "opportunity cost". Apparently Krugman et. al. still ignore it.
restoreliberty Wrote: Jan 24, 2013 6:01 AM
Wow, I haven't seen that phrase in so long my eyes boggled!

Oppotunity cost, now there is concept that could stand to have some light shown on it!

Just like in the United States, politicians in the United Kingdom use the deceptive practice of “baseline budgeting” as part of fiscal policy.

This means the politicians can increase spending, but simultaneously claim they are cutting spending because the budget could have expanded at an even faster pace.

Sort of like saying your diet is successful because you’re only gaining two pounds a week rather...