The Dangers of Ideology and Dogmatic Thinking…

October 13, 2008 at 9:34 pm (Uncategorized) (, , , , )

Paul Krugman, the recent winner of the Nobel Prize for Economics, made an interesting comment today while in Stockholm to receive his honor. He pointed out that U.S. Treasury Secretary Paulson had rejected a “sort of temporary part-nationalization” involving governments giving financial institutions more money in return for stock, while the British government “went straight to the heart of the problem … with stunning speed.” Krugman said the leading European economies have “in effect declared themselves ready to follow Britain’s lead, injecting hundreds of billions of dollars into banks while guaranteeing their debts…. And whaddya know… Mr. Paulson – after arguably wasting several precious weeks – has also reversed course, and now plans to buy equity stakes rather than bad mortgage securities.” Secretary Paulson, a George Bush appointee, is an economic ideologue as opposed to being an intelligent pragmatist. He conforms his economic theories to fit his politics, which forbids anything close to nationalization because it violates the conservative dictums of smaller government and the so-called “free market.” Rather than do what would have worked, and doing it right away, his ideology paralyzed his thinking and the economy sunk further into the abyss. If you’re ignorant and have no ideas of your own, your turn to your ideology and your talking points. This is what we’ve seen the McCain/Palin ticket do time and again throughout this campaign. Krugman, who is not without credentials, has labeled the Republican Party as “the party of stupid.”


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