I just saw this tweet from Andrew Coyne from two days ago. It links to a post from Cafe Hayek holding up the robustness of the German economy as proof that austerity pays off and all you dirty commies don't know what you're talking about.
My response is that Keynesians would first point out that the German and American economies are incredibly different. They would then point out that the Germans suffered nowhere near as badly as the Americans did in the recent recession. Finally, they would point to Ireland and just as arrogantly ask "What say you libertarians?"
That's what Keynesians would say. This type of absurd argument is common place, indeed it's the basis for just about all economic arguments. I remember reading a Krugman post a few weeks ago lamenting the current ideological warfare in economics. It is pretty disturbing. There is no more, or at least very little, truth seeking in modern economics, just a constant tug of war between saltwater and freshwater schools.
1 month ago