No Coercion Exploring the idea of a stateless society.

Keynesianism and government intervention

Here's a video of Dan Mitchell of the Cato Institute doing a pretty good job of explaining why Keynesian economics is absurd: Keynesian Economics is Wrong: Bigger Gov't is Not Stimulus

And here's a good piece from a more hardcore libertarian (Austrian) perspective: "Neanderthal" Economics.

From the piece:

However, there is something government can do in the Austrian cure for a recession: radically remove itself from the economy. It can cut spending and taxes, which will encourage saving and investment. It can allow businesses and banks to fail. It could abolish the central bank. It can allow prices to fall. A removal of regulations that hamper the free market will also aid the market in recovery. As Murray Rothbard wrote,

"In sum, the proper governmental policy in a depression is strict laissez-faire, including stringent budget slashing, and coupled perhaps with positive encouragement for credit contraction. For decades such a program has been labelled 'ignorant,' 'reactionary,' or 'Neanderthal' by conventional economists. On the contrary, it is the policy clearly dictated by economic science to those who wish to end the depression as quickly and as cleanly as possible."

Krugman, assuming he really wants to cure the recession, would be wise to leave Bizarro World, and to follow Neanderthal economics.

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