On Samuelson

The great Paul Samuelson, November 2008:

Such systems [ed: "unregulated" free markets] cannot regulate themselves, either micro-economically or macro-economically. Wherever tried they systematically breed intolerable inequalities. And instead of such inequality being the necessary price to encourage dynamic progress via technological and managerial innovations, it instead breeds dysfunctional shortfalls in what economists call "total factor productivity."

Convincing proof of these points can be found in the deterioration in the US from 2001 to 2008.

The great Paul Samuelson, 1989:

The Soviet Economy is proof that, contrary to what many skeptics had earlier believed, a socialist command economy can function and even thrive.

An anonymous commenter on Kids Prefer Cheese, in response to the above:

Paul is not so much with the R-square.

Hat tips to Angus and Tyler Cowen.

Dear Mr. President

Dear President Bush,
If it isn't too much trouble, could you please stop pretending to be in favour of laissez-faire economics for the remainder of your Presidential term, and for the duration of your life after? After all, you've just authorised and signed a multi-trillion bailout of every politically connected business in the US. Throughout the better economic climes of the earlier parts of your administration, you've grown government, you've criminalised and regulated previously legal forms of commerce, and you've sought to extend your administration's reach to regulate and prosecute commerce in foreign countries and by foreign nationals. You even supported Sarbanes-Oxley for God's sake. What I am saying is, when you say things like this, you sound awfully hypocritical. Worse, you make look people who support freeing markets (as opposed to merely cutting taxes for Rich Texans) bad. Throughout your two terms in office, you've given conservatisim and free markets a bad name. Is it really too much to ask you to stop now, seeing as you've already hurt us so much?

Sincerely,
Kunal Sawardekar.