Dirk Ehnts — Romneynomics is really just neoclassical economics in 2012

Six days ago, Paul Krugman set out to understand Romneynomics. Since I am currently teaching macroeconomics 101 I have collected some quotes and facts in order to show how neoclassical ideas moved from Say to Ayn Rand to Alan Greenspan to Mitt Romney. I think that neoclassical ideas should be seen as a meme, which is like a gene something that can spread. Keynesian economics would also be meme, so please don’t be offended.

econoblog101
Romneynomics is really just neoclassical economics in 2012
Dirk Ehnts | Berlin School for Economics and Law

Don Hazen — 9 Reasons Romney's Choice of Paul Ryan for Veep Is Smarter Than You Think

Romney's Ryan decision is a hugely dangerous step toward getting the Koch brothers' hand-picked star close to the presidency.

AlterNet
9 Reasons Romney's Choice of Paul Ryan for Veep Is Smarter Than You Think
Don Hazen

Best progressive analysis I've seen yet. All nine points are spot on.

As Warren Mosler points out, the good news is that this should energize the progressive base, which was getting pretty lackadaisical about showing up for Obama after the perceived sell-out.

It's a really questionable move for the GOP considering the way the demographics of the country are running. This is an outright slap in the face for minorities, whose numbers are increasing faster than whites. This agenda does not fit well with the values of the Millennials aka Generation Y either, and they are going to be the largest voting bloc for a long time.

So this could turn out to be a good short term strategy, but it is very risky long term. Could the GOP reverse perception of itself in the future to accomodate the coming demographic shift? Probably only if it is taken over by another faction and moves back toward the center in a significant way.

Remember Nixon's "secret plan to end the war"? Remind you of Romney's plan to revamp the economy?

Twelve years later, Mitt Romney, the presumptive Republican nominee, claims his far deeper tax cuts would have a price tag of exactly zero dollars. He has no intention of submitting his tax plan to the committee or anywhere else that might conduct a serious analysis, since he seems intent on running a campaign far more opaque than any candidate has in years.He has made his economic plan the fundamental basis of his candidacy, and yet with the Republican convention just two weeks away, we know next to nothing of the plan’s details. The extreme cuts proposed by his new running mate, Paul Ryan, are far more hard-edged, making Mr. Romney’s mathematically impossible promises look vague and shopworn by comparison.

Read it at The New York Times Sunday Reveiw | Opinion
A Tax Plan That Defies the Rules of Math
By David Firestone
(h/t Mark Thoma)

Oh, and don't ask any questions about Bain Capital either, it's "off-limits."

DeLong smacks down Hassett, Hubbard, Mankiw, And Taylor

Brad DeLong smack down Kevin Hassett, Glenn Hubbard, Gregory Mankiw, and John Taylor — bad — very bad. Even uses the "L" word. IF they had any shame, they would be looking for a rock to climb under.

Brad DeLong | Grasping Reality with Both Invisible Hands
Things Wrong With Hassett, Hubbard, Mankiw, And Taylor, "The Romney Program For Economic Recovery, Growth, And Jobs"
J. Bradford DeLong | Professor of Economics, University of California at Berkeley and a research associate of the National Bureau of Economic Research

Paul Davidson — How Mitt Romney Got Rich Destroying American Jobs and Promoting Sweatshop Capitalism

Romney-style capitalism means misery for working people and big money for the 1 percent.

Read it at AlterNet
How Mitt Romney Got Rich Destroying American Jobs and Promoting Sweatshop Capitalism
Paul Davidson
(h/t Matias Vernengo at Naked Keynesianism)

Miles Kimball — Will Mitt’s Mormonism Make Him a Supply-Side Liberal?

Former Mormon Miles Kimball speculates on where Mitt stands in relation to Mormon social and economic principles and how this would influence his approach to governing, in particular with respect to social programs and economic policy. Good primer for anyone not up on Mormon principles. This is a balanced presentation by a former believer who respects the belief but no longer holds it. No "magic underwear."

Read it at Confessions of a Supply Side Liberal
Will Mitt’s Mormonism Make Him a Supply-Side Liberal?
Miles Kimball | Professor of Economics and Survey Research, University of Michigan

The myth of out of control government spending

The myth of runaway spending.

Many of you have probably already seen the chart I posted below, but I it's worth another look particularly in light of Mitt Romney's recent comments on "fiscal responsibility."

"The mission to restore America begins with getting our fiscal house in order. President Obama has put our nation on an unsustainable course. Spending is out of control. Yearly deficits are massive. And unless we curb Washington’s appetite for spending, the national debt will grow to the size of our entire economy this year."

The chart shows that spending is clearly not out of control. In fact, it is lower now as a percent of GDP than when Ronald Reagan was in office.  By the way, the Republicans had no problem with Reagan's "out of control" spending.

Look at how government spending collapsed under Clinton. We still haven't recovered from that. And the Clinton surpluses are considered to be so virtuous. It was totally the opposite.