Interesting Links for October 28

Here, a blogger quotes from Robert H. Nelson's book "Economics as Religion: from Samuelson to Chicago and Beyond"

http://www.nakedcapitalism.com/2010/10/obama-no-longer-bothering-to-lie-credibly-claims-financial-crisis-cost-less-than-sl-crisis.html#comment-213902


Here, Bill Gross discusses the decline in the population growth rate.  It isn't good for capitalism.  I agree with that part of his analysis but disagree with his take on it.  In my view, it simply shows that capitalism cannot work in the long run; it is inherently a Ponzi scheme which depends on unlimited growth.  We need a sustainable society and Capitalism cannot provide that.

http://www.pimco.com/Pages/PrivatesEyeBillGrossAugust2010.aspx

Here, Ezra Klein interviews Joseph Stiglitz.  Unlike other liberal economists (such as Krugman) and centrist economists (such as Brad DeLong), Stiglitz opposes Quantitative Easing 2, a new boost to the money supply to restore the economy.  Stiglitz says we need more economic stimulus, not QE2, mainly because QE2 will not be effective or cost-effective.  I agree except that I would go further, much further.  We need economic planning, public takeover of strategic sectors like energy, and government guaranteed full employment.

http://voices.washingtonpost.com/ezra-klein/2010/10/stiglitz_we_need_more_stimulus.html


Here, Bradford Delong discusses deflation.  He thinks it's bad.  I think he's being far too generous.  As usual he's very smart but only about half right.  But that's better than zero, where you find the Chicago economists.  I'm not sure why I'm linking to this, maybe just so I can finally close the browser window on it.  But just in case you were still wondering why deflation is worse than inflation.

http://delong.typepad.com/sdj/2010/10/hoisted-from-the-archives-delong-1999-should-we-fear-deflation.html#comments