It is interesting how out of touch with economic reality Tea Party politicians can be. Today both Paul Krugman and Glenn Hubbard and Tim Kane cite Milton Friedman in illustrating how Tea Party people distort reality. Most of my economic training was in learning what Milton Friedman placed into economic literature.
Here is what Milton Friedman believed in: Monetary policy must fight inflation. Monetary policy is essential to use in turning around or preventing depressions. Fixed exchange rates prevent monetary policy from doing the 1st two things, so floating exchange rates are highly preferable. Balanced budgets are best over an economic cycle and you need revenues to pay the expenses.
Now Rand Paul said he would nominate Milton Friedman to replace Bernanke because he would promote a strong currency. Milton Friedman believed fixed exchange rates were the worst thing a country could do and that a weak currency is essential when you are in recession. I think it would be a great idea if Milton Friedman were Fed Chairman but to do so, he would have to be alive and not be over 100 years old if alive. How does such ignorance get elected to the US Senate? and Rand Paul is a Dr.!
It is unbelievable what ignorance is doing to this country.
Paul Krugman on how the Tea Party distorts Milton Friedman
Glenn Hubbard & Tim Kane on how to balance a budget
No comments:
Post a Comment