In response to:

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

johnm h Wrote: Jan 24, 2013 6:29 PM
Some folks here still debate Keynes, most know it fails the common sense test, but many who studied econ 101 or beyond are still enamored of the model in spite of its lack of empirical results. The latter should read Hayek. Hayek regretted never writing a comprehensive deconstruction of Keynes; and while he debunked it, he did so in bits and pieces over the years. He never wrote the definitive critique because he did not think Keynes would be taken seriously. Hayek dismissed Keynes’ macro observations because Keynes wasn’t an economist, but a policy guru, yet he respected him for his brilliance, for this criticism of the early monetarists, and for his article of the “Economic consequences of the peace”.
FletchforFreedom Wrote: Jan 24, 2013 9:21 PM
Ultimately, Hazlitt's "The Failure of the New economics" deconstructed Keynes and has never been effectively responded to.
johnm h Wrote: Jan 24, 2013 6:31 PM
Hayek underestimated the importance a bogus theory would become to the political class and to charlatans like Krugman.

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...