Tuesday, October 26, 2010

Stephen Colbert, Destroyer of Economies

Stephen Colbert, as most of you know, is terrible for the economy. He's best known for the demand shock he introduces. He calls rallies for "keeping fear alive", which is bad news whether you're a Higgsian or a Keynesian. Some economists insist most uncertainty and fear comes from the government, others suggest the bulk of it comes from demand conditions, but Colbert doesn't discriminate - in his world, you have everything to be afraid of.

As if aggregate demand hasn't caused enough problems for us in the last couple years, Colbert is now introducing a clear aggregate supply shock, reducing Greg Mankiw's incentive to work. What's more, this obviously reintroduces the prospect of inflation problems. Stephen Colbert is not only driving us into a deeper depression - he's raising the specter of stagflation.

1 comment:

  1. Was browsing my google reader, and:


    *grabs popcorn*


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