I saw the interview with him. He is a very young man and has very little real life wisdom.Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement
By Kevin Roose
4/18/13 at 4:29 PM
Most Ph.D. students spend their days reading esoteric books and stressing out about the tenure-track job market. Thomas Herndon, a 28-year-old economics grad student at UMass Amherst, just used part of his spring semester to shake the intellectual foundation of the global austerity movement.
Herndon became instantly famous in nerdy economics circles this week as the lead author of a recent paper, "Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff," that took aim at a massively influential study by two Harvard professors named Carmen Reinhart and Kenneth Rogoff. Herndon found some hidden errors in Reinhart and Rogoff's data set, then calmly took the entire study out back and slaughtered it. Herndon's takedown — which first appeared in a Mike Konczal post that crashed its host site with traffic — was an immediate sensation. It was cited by prominent anti-austerians like Paul Krugman, spoken about by incoming Bank of England governor Mark Carney, and mentioned on CNBC and several other news outlets as proof that the pro-austerity movement is based, at least in part, on bogus math....
His basic theory is to spend your way out of a depression. If that works then why don't you and I do that, and I bet we go bankrupt very quickly. He wants the countries to keep printing money and spending it to keep the economy up. He says that cutting spending just causes more job loses and a weaker economy.
He is probably correct about that but I wonder just how long a country can keep printing money and overspending before it actually collapses. It might be a no win situation either way. The moral of the story is not to let your country spend more than it takes in and live within a budget. This country has had no budget in 4 years. Hummm, could that be a problem? I wonder what he would say about that?
Since I am not an economic professor all these people can claim anything and it is probably just smoke and mirrors. None of these so called experts agree. If any of them are correct then why hasn't anything worked? All I know is old fashioned economics such as make a budget and live within your means has worked since almost the beginning of man. Common sense and trial and error over centuries have proven it that to be true.
Perhaps the only way out is total economic collapse, hurt for awhile, and start over. That is how it will end for sure if we keep spending more than we take in to run this country.