the fable of krugman

. . . is the title of this article.  It does us all the valuable service of explaining the folly of the neo-mercantile nonsense being pushed by such respected folks as Nobel Prize Winner Paul Krugman.  In Paul Krugman’s view, China is an evil bogeyman which is keeping the entire world in a state of depression by providing the rest of the world with goods at bargain prices.  In a sane world, this sort of view would be scoffed out of consideration, with words like,

By pursuing this action, Chinese producers indeed are able to sell their goods more cheaply abroad than are Americans. This much is true. Conversely, this also means that China is willing to ship real wealth overseas and accept our worthless green pieces of paper in return. Yes, we have a situation in which the poorer Chinese are playing the role of philanthropist to the wealthy Americans and Europeans. Hmmm, exploitation, anyone? This is a better deal than colonialism.

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