Monday, March 12, 2012

Quotation for Today: Not Just Wrong, But Damnably Wrong

The quotation for today fits right well with Mitch Daniels estimate of Iraq war costs.  Mitch Daniels, in a rebuttal to Lawrence Lindsey's estimate of $100-200 billion war cost (which turned out to be very wrong), estimated the Iraq war would cost $50-60 billion. Now, across the jump to the quotation for today.

 “The idea that austerity measures could trigger stagnation is incorrect.” 

Jean-Claude Trichet

Mr. Trichet was the president of the European Central Bank when he made the above declaration in June 2010.

Paul Krugman, in his New York Times op-ed, reminds us of the economic fallacy of Mr. Trichet's comment and of the arguments of others who now advocate and have advocated for fiscal austerity during an economic depression.

Mr. Trichet's comment will fit well in the pantheon of deceptive statements; right along side Mitch Daniels' forecast of Iraq war costs.

Krugman, Paul. "What Greece Means." The New York Times 11 March, 2012: online edition.

Related information:

Packer, George. "Mitch Daniels's Iraq War." The New Yorker 1 March, 2010: online edition.

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