RE: Krugman critiques Dow 36K

From: Waldemar Ingdahl (
Date: Sat May 06 2000 - 09:30:35 MDT

>From: Max More <>
>Subject: RE: Krugman critiques Dow 36K
>Date: Fri, 05 May 2000 13:36:10 -0700
>At 11:01 AM 5/5/00 , you wrote:
>>connections in a network is proportional to the square of the number of
>>participants--becomes apparent: most people have nothing to say to each
>>other! By 2005 or so, it will become clear that the Internet's impact on
>>economy has been no greater than the fax machine's."
>>This last statement seem extraordinary to me. I would have thought the
>>market cap of Cisco alone is greater than the sum total of the world's fax
>>machine industry (and already was in '98?). What am I missing?
>Nick: I don't thinking you're missing anything. My take on Krugman is that
>he has a very poor understanding of recent developments in the economy. He
>couldn't be more wrong about the Net. I think we've barely seen the
>beginning of its impact. (And those of you happily writing off Microsoft
>had better take some Valium if their plans for Next Generation Windows
>Services work out...) I've read a fair amount of Krugman. He's certainly a
>good writer, but I find his economics mixed and his forecasts lousy. He's
>written some good stuff, such as explaining the "Asian Miracle" in ways
>that many others seem to have missed. But on the New Economy, there are
>many better resources.
>The future of the economy interests me so much that I'm thinking of putting
>up a new section for the ExI website on the topic. In the meantime, if you
>want lots of good information, go to and select the New
>Economy topic (and related topics on N.E. Commerce, Business Architecture,

I agree in many ways with Max More, but I think it should be pointed out
that Krugman's critique of the "Asian Miracle" was most probably written as
a polemtic against James Fallows' book, in order to curb his urges for
protectionism and more state- control of the economy. Fallows book gave the
politics of Perot and Buchanan an intellectual apology.

Waldemar Ingdahl
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