Tag Archives: mankiw

Greg Mankiw Discovers the Math and the Arithmetic on the Same Day

By Dale Pierce

Raising taxes is a good idea after all. In fact, it is now quite necessary, according to former Romney flack and alleged deep thinker Greg Mankiw of Harvard University. (Whose introductory textbook in economics may go down in history as the single greatest disinformational success of all time.)

In this Sunday’s New York Times, Prof. Mankiw bravely challenges what he takes to be the newly prevailing group-think in Washington – namely, the bi-partisan idea that “taxes on the middle class must not rise.” This is “Bad Math”, we are told. This does not accord with the “laws of arithmetic” – at least not as Prof. Mankiw understands them. It is, he concludes, our government’s stubborn reluctance to tax the non-rich which explains why “the political process has become so dysfunctional.”

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Mankiw’s Ode to the Governmental Competition that Made Romney Wealthy

By William K. Black
(Cross-posted from Benzinga.com)

This is the second part of my discussion of N. Gregory Mankiw’s column asserting that governmental competition is desirable for the same reason that private competition is.  Mankiw was Chairman of President Bush’s Council of Economic Advisors from 2003-2005.  He was one of the principal architects of the perverse incentive structures that proved so criminogenic and drove the ongoing financial crisis.  He gave no useful warnings of the necessity for containing the developing crisis – even after the FBI’s September 2004 warning that mortgage fraud was become “epidemic” and would cause a financial “crisis” if it were not contained.  He is now Mitt Romney’s principal economic advisor.  His column favors the “competition” argument that led him to support crippling financial regulation even as private sector competition led to endemic fraud.  Mankiw is a moral failure as well as a failed economist.  His infamous response to Akerlof and Romer’s 1993 paper (“Looting: the Economic Underworld of Bankruptcy for Profit”) was that it would be “irrational” for CEOs not to loot “their” corporations.  He ignored all of the prescient warnings we made about how accounting control fraud drove our crises and he continues to ignore those warnings and the reality of our recurrent, intensifying financial crises.  He wants the U.S. to move even more rapidly downward in the “competition in regulatory laxity” that is driving those crises.

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Romney’s Lead Economist Urges Policies that will Cause the Next Financial Crisis

By William K. Black
(Cross-posted from Benzinga.com)

Presidential nominees of either U.S. party can secure economic advice from any economist in the world.  This makes it all the more amazing and sad that they choose economists with track records of disastrous policy advice.  Bill Clinton chose Robert Rubin, George W. Bush chose Gregory Mankiw, Obama chose Lawrence Summers, and Mitt Romney chose Mankiw.  Rubin and Summers led the Clinton administration’s efforts to gut financial regulation.  Mankiw led the efforts under Bush.  Collectively, these efforts created the criminogenic environment that produced endemic financial fraud (“green slime”).

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