Paul Krugman vs Estonia: Don't let the facts get in the way of ideology

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    Jun 13, 2012 11:00 PM GMT
    http://www.weeklystandard.com/articles/krugman-vs-estonia_646857.html

    John Maynard Keynes famously summarized his recipe for spurring growth as having the government pay people to “dig holes in the ground and then fill them up.” It’s only fitting that Keynes’s most famous contemporary disciple, the New York Times’s Paul Krugman, is adept at digging holes. Krugman has never met a criticism of Keynesian stimulus spending that he didn’t try to shout down, even at the price of torturing data.

    Last week, Krugman was in rare form. With most of Europe on the edge of a fiscal cliff, a recent article in the Global Post pointed out that one country in the eurozone, Estonia, has a “fiscal surplus, low debt, and soaring growth.” Not only that, Estonia’s success might be because “the country, led by President Toomas Hendrik Ilves, has cut government budgets, slashed civil servants’ salaries, and raised the pension age.” This not only flies in the face of Keynesian economics, but jars every liberal bone in Krugman’s body. So the Princeton professor produced a chart on his New York Times blog showing that since 2007 Estonia has endured “a terrible—Depression-level—slump, followed by a significant but still incomplete recovery.” Speaking of incomplete, if you look at Estonia’s economic performance over the last decade, GDP has tripled. And it had nearly quadrupled at the peak of the bubble in 2007, a suspiciously convenient point in time for Krugman to begin evaluating the country’s economy. Estonia’s economic growth is still moving at a healthy clip if you look at any trend line longer than the five years chosen by Krugman.

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    Jun 14, 2012 6:17 AM GMT
    Krugman is such a joke, I can't believe anyone takes him seriously. He's very well known for manipulating statistics and cherrypicking them. His Nobel Prize is on par with Obama's: almost as outrageous as it is ridiculous.
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    Jun 14, 2012 6:24 AM GMT
    But they still have that pesky Russian problem icon_wink.gif
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    Jun 14, 2012 1:04 PM GMT
    Radamisto saidKrugman is such a joke, I can't believe anyone takes him seriously. He's very well known for manipulating statistics and cherrypicking them. His Nobel Prize is on par with Obama's: almost as outrageous as it is ridiculous.

    After Obama won the Nobel Prize for talking about peace, organizations looked into the make up of the folks who decide on the selection. Overwhelmingly far left wingers. In the eyes of many, the prize lost its stature, which is unfortunate.

    Must laugh at the presumption that you don't have an economics background.
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    Jun 14, 2012 1:13 PM GMT
    JPtheBITCH said
    Radamisto saidKrugman is such a joke, I can't believe anyone takes him seriously. He's very well known for manipulating statistics and cherrypicking them. His Nobel Prize is on par with Obama's: almost as outrageous as it is ridiculous.

    I never can quite get over the arrogance of some pinhead like you with no economics background thinking you're qualified to judge whether Krugman's Nobel is merited or not.

    Humility is a virtue. You right-wingers never seem to have any.


    My bad, I should have included a link. Well, there you go! http://mises.org/daily/6055/Charting-Fun-with-Krugman
  • janu88

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    Oct 07, 2012 9:00 AM GMT
    Actually Krugman is right icon_smile.gif
    As hard as it is for me to accept it.
    But Estonia is FAR from recovering from anything. People get 300-500 euro salary, the food costs the same which it does in Helsinki,Finland, Electricity is going for free market, which is gonna raise the electricity price around 15% which means everything goes up due to electricity bills, plus the most idiotic thing what was done by estonian govermenet is that 1/4 of our GDP is going for ESM (European Stability Mechanism) can you imagine that one fourth of a countries GDP is just taken away by the European Union to help nations like greece and spain and whoever fucks, whos been living pretty fucking great the past 50 years, when we were occupied by communist fucks.
    this year alone around 20,000 young people left the country (me included) Seems there gonna be a general strike very soon as well.
    Guys It's pretty fucked up there...
    this is just a little part of it.