Bill Anderson’s recent Mises.org piece on Krugman rings truer each day. In today’s New York Times Magazine, Krugman attempts to push supply-side theory out of the economics profession, as he attempted several years ago to do to the Austrians. It is clear that Krugman believes the only professional economists are Monetarists and Keynesians of various stripes. Jude Wanniski and Robert Mundell: call your office.
Here is an excerpt:
The supply-side movement likes to present itself as a school of economic thought like Keynesianism or monetarism — that is, as a set of scholarly ideas that made their way, as such ideas do, into political discussion. But the reality is quite different. Supply-side economics was a political doctrine from Day 1; it emerged in the pages of political magazines, not professional economics journals. ...
Loosely speaking, that is, supply-siders work for the vast right-wing conspiracy. What gives supply-side economics influence is its connection with a powerful network of institutions that want to shrink the government and see tax cuts as a way to achieve that goal. Supply-side economics is a feel-good cover story for a political movement with a much harder-nosed agenda.
