Man has only one tool to fight error: reason.
— Ludwig von Mises
1. David Glasner, “Advice to Scott: Avoid Accounting Identities at ALL Costs.” My two cents: Paul Krugman calls accounting identities the law, but what if the accounting identity does not reflect reality (such as, S=I)?
2. “Lord Keynes,” “Austrian Substitutes fo GDP.” Complete disaggregation of the economy, at all points of analysis, is ridiculous — the structure of production, individual stages of production, et cetera, are all aggregate concepts. Thank goodness that no serious Austrian economist argues in favor of complete disaggregation. You have to know when an aggregate is okay to use, and when you are using the right aggregate. I do not know anything about Austrian replacements for GDP (except that there are quite a few of them), but they are not meant necessarily to deaggregate, but to make the aggregate more reflective society (whether they are successful towards the end is another topic altogether). But, the “Austrians hate aggregates, but use them and are therefore hypocrites” is just as wrong and as tired as the “I am an Austrian and I hate aggregates” argument.
3. Michele Kelemen, “New U.S. Ambassador Already Facing Critics In Russia.”
4. Steven Greenhouse, “More Lockouts as Companies Battle Unions.” Between 1933– 37 we saw a strengthening of labor unions. Is the 2008–? period one of a return of power to employers?
5. Paul Krugman links to Daniel Kuehn’s new comment on the Depression of 1920–21. Is it time that an Austrian weigh in again (I have noticed a lot of silence after Daniel published his paper in the RAE)?