Re: Krugman looks back from 2096

From: Michael S. Lorrey (
Date: Wed Jul 12 2000 - 08:55:54 MDT wrote:
> Max More <> wrote:
> > At 10:39 AM 7/11/00, Robin Hanson wrote:
> > >future speculation of his I just came across:
> > >
> > Since I mentioned a while back that it seemed to me that Krugman, good as
> > he is on many issues, does not "get" the New Economy, and I did not find
> >
> >
> OTOH, since the writer of that called Krugman on oil prices, which had falled
> at the time of writing, I'll note that they've bounced back up to $25-30 a
> barrel.
> And if the Third World reaches for First World prosperity that will increase
> demans for basic resources. Now, in the long run ingenuity and innovation and
> discovery may make us all better off. But there is no guarantee that new
> supply will keep level with demand in the short run.

Except that oil prices are not due to the actual market demand or actual ability
to supply, but by restraint of supply by a monopolistic syndicate, so it is
false evidence to use to reflect any trend in increase in cost due to third
world development. Inflation of prices in general has on a decade by decade
average, have always trended higher than inflation in energy prices, something
which Krugman ignores.

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