I saw a crazy quote today from Paul Krugman, he said:

“If people rush out to buy bottled water and canned goods, that will actually boost the economy.”

I thought there was no way he could have said something so ridiculous about the hurricane….so I researched the source of the quote… He did not say that about the hurricane. He said it on September 14, 2001 in reference to 9-11. Even worse.

How he won the Nobel Prize in Economics is a mystery. Keynesians don’t seem to understand the prospect of creating or destroying value. In good economics growth occurs because we can take something and create more value from nothing.

Testing my theory is pretty easy- if having a hurricane or 9-11 was a net boost for the economy – would having 1000 such disasters be even better?

In Krugman’s world destroying wealth somehow creates more wealth. It doesn’t.