Bob Murphy

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The Paradox of Thrift

There seems to be some confusion about what this is. Wikipedia knows what’s up: The paradox of thrift (or paradox of saving) is a paradox of economics, popularized by John Maynard Keynes, though it had been stated as early as 1714 in The Fable of the Bees,[1] and similar sentiments date to antiquity.[2][3] The paradox […]

Papola Has a Barrel of Ink

Uh oh, I think John took it personally when some people accused him of dishonesty and/or ignorance. (Words hurt, kids.) Remember, the issue here is that John in his latest Christmas video is taking on the “fallacy” (his term, which he attributes to Keynes and others) that consumption drives the economy, and that if everyone […]

Keynes Hearts Saving?

John Papola, creator (with Russ Roberts) of the Hayek-Keynes rap videos and the latest Christmas video, is perplexed that he is getting push-back from people saying he’s setting up a strawman by implying that Keynesianism promotes the idea that consumption drives the economy. John sent me an email with a quote from the General Theory […]

DeLong Smackdown on Landsburg (and Callahan)

Wow, if you thought we blogging economists were talking past each other in the Cantillon debate, DeLong’s response to Landsburg on this Thomas Nagel issue (about the ability of pure reason to give us knowledge about reality) will knock you on the ground. I don’t even know how to summarize it; it must be seen […]

One More on Cantillon for 2012

[UPDATE below.] Last post this year from me on Cantillon, with the usual disclaimer that if Paul Krugman jumps in, all options are back on the table… In another comment Bill Woolsey says: In my view, Richmond’s short quotation and your short quotation about Wall Street restaurants were very much wrong and focus on from […]

Bill Woolsey Replies on Cantillon Effects

Bill Woolsey opened a long comment in my last post by writing, “Suppose the government decides to increase tank production. It might fund this by printing currency, by borrowing money, or by raising taxes. The tank manufacturers benefit the same amount regarless of this choice.” Hang on a second, fellas. You are changing the question. […]

Clarification on Cantillon Effects

Steve Horwitz’s thoughts reinforced my own inkling that I should spell out what I had always filed away as “the Austrian point about Cantillon effects.” So the following is what I would have said, had you asked me a month ago. Note that I speak for myself, and I’m not even saying this is what […]

An Example of Wishy-Washy Dualism versus Hardcore Scientific Materialism

In the comments of my post on materialism, Ken B. lives up to the stereotypical materialist better than anyone could have hoped. Among his other claims, he said that dualism offers not a single testable prediction, whereas materialism is falsifiable. (If I misread him, I will retract these statements, but I’m pretty sure that’s what […]