Megan McCardle Says _____. But That's Really Not Right...
Winston Churchill Liveblogs World War II: May 16, 1940

links for 2010-05-15

  • M: "If, therefore, I altogether ignore our merits – our charm, our intelligence, our unworldliness, our affection I can see us as water-spiders gracefully skimming, as light and reasonable as air, the surface of the stream without any contact at all with the eddies and currents underneath. And if I imagine us as coming under the observation of Lawrence's ignorant, jealous, irritable, hostile eyes, what a combination of qualities we offered to arouse his passionate distaste; this thin rationalism skipping on the crust of the lava, ignoring both the reality and the value of the vulgar passions, joined to libertinism and comprehensive irreverence, too clever by half for such an earthy character as Bunny, seducing with its intellectual chic such a portent as Ottoline, a regular skin-poison. All this was very unfair to poor, silly, well-meaning us. But that is why I say that there may have been just a grain of truth when Lawrence said in 1914 that we were 'done for'."
  • PK: "Most people who look at the IMF report will... read it as telling a tale of government profligacy.... But... the report... says that the financial crisis has made us permanently poorer... and governments have to tighten their belts to make up for that loss.... [D]o we really believe that a financial crisis permanently depresses the trend line of economic growth? Yes, I know that the IMF has statistical analyses that seem to say that; but it’s not clear what the mechanism is.... Second... isn’t the real message of this report that we should respond to these crises with a maximum effort to prevent damage to the economy?... isn’t this an argument for more aggressive — not less aggressive — fiscal policy?... [I]f you take the IMF’s model of the effect of slumps on potential output seriously... increasing government spending in a slump more or less pays for itself: it leads to higher output not just in the short run but in the long run