[d13hard]

probably the first time i vigorously disagree with krugman....and oddly he appears to be in stark contrast to some of his own writings.

austrian economics has probably become too dogmatic for some, but i do think there is validity in the notion that recessions realign capital flows in more constructive directions. look at what we are trying to do now - fight excess debt brought on by overconsumption with more debt to support overconsumption.

the stimulus bill subsidizes the purchase of new cars...but we just spent ten years watching people blow too much of their net worth on cars...is more of this really constructive? what next...government mandates that we all buy (taxpayer subsidized) home theater systems?

i'm troubled that the government is working hard to promote the same reckless overconsumption that put us in this mess to begin with...but it won't work, people out there are getting the message that debt is poison.

[corentin]

> austrian economics has probably become too dogmatic for some

Milton Friedman once said "there is no Austrian economics - only good economics, and bad economics".

The question is not whether the theories of the austrian school are too dogmatic or not; the question is whether they are right or not.

[astine]

I think that what he means is whether the adherents to those theories adhere in a dogmatic or rational fashion.