Kotlikoff versus Krugman: Economic Fallacies Exposed

In a recent column, Boston University Economics professor Laurence Kotlikoff challenges what he calls "Krugman's Four Dangerous Fiscal Fables."  The economics in academia must be getting worried that Mr. Krugman's Keynesian proposals might destroy their reputations as well.

Kotlikoff opens by listing the fables:

The first is that taxes can be cut to raise revenues and lower the deficit.  The second is that spending can be raised to raise revenues and lower the deficit.  The third is that the deficit can be financed by printing money with no real consequences.  And the fourth, and most dangerous, is that the deficit's accumulated value -- the official debt -- is a meaningful measure of our country's or any country's true indebtedness.

Read more: http://www.americanthinker.com/2013/03/kotlikoff_versus_krugman_economic_fallacies_exposed.html#ixzz2NW9zOc6n