Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

[pompeyfaith]

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.
We spoke to Herndon about his crazy week, and how he's planning to celebrate his epic wonk takedown.

Grad Student Who Shook Global Austerity Movement -- Daily Intelligencer

[SXGuy]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

hahaha im so glad someone has come out and said it! Austerity doesnt work! Max Keiser is well known for explaining this as well.

[vasarely]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

Of course austerity doesn't work, it creates a situation where people are fearful for their jobs and their future and this makes them cut back. Even those who are working full time and whose incomes are not affected tend to be cautious. This means less shopping, going out less, buying cheaper goods (Poundland and similar outfits are doing well),etc. Whilst in principle, this may sound like a good thing, people saving instead of spending and all that, in reality it has a ripple effect, businesses sell less and make less money, in turn they either have to lay people off or just not hire more people, those who are still employed fear for the jobs and spend less, it goes round full circle.

This is even more noticeable in this day and age where a lot of consumer spending is non-essentials and most of the heavy manufacturing has moved away from the UK. Many businesses in the UK these days are fashion retail, food and drink, things where people can easily cut down. Supermarkets still make money because even the unemployed have to eat.

Actual cuts and austerity are not even necessary to have this effect, the mere mention of such things in the press and in day-to-day conversations is enough to have the effect described above and leave the country in a permanent state of recession.

[The Tech Clerk]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

Saw local weekly paper headline, New Hope as Shops may open, ( next to all the charity shops), well o.k. employ a couple of people but most people here are out of work and no spare money to shop, needs a major action to correct situation, and when are the Bigotts in Westminster going to see the world are trying to tell them they have got it wrong?

[pompeyfaith]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

They are well aware it is not working they do not need the IMF to tell them, but when more money is going to landowners and the upper crust and that it does not affect them they do not care.

[CleverClogs (RIP)]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

when are the Bigots in Westminster going to see the world are trying to tell them they have got it wrong?

Never.

They still prefer to tell lies about the size of the deficit they inherited from the previous kakistocracy and, for some reason best known to them, the Labour Party seems happy to let them.

Read this --> BBC NEWS | Magazine | The myth of record debt

[pompeyfaith]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

Amazes me how Cameron can say that the deficit is reducing when in fact it is rising He is well aware that the deficit is not the problem.

[CleverClogs (RIP)]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

But why would a snollygoster like him admit that he is part of the problem?

[SXGuy]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

Truth is they want the country in debt, thats their real agenda.

You only have to look at how pay day lenders have been allowed to loan money to people who could never pay it back, that aint right.

[CAPS ESC]

Re: Meet the 28-Year-Old Grad Student Who Just Shook the Global Austerity Movement

It's comforting to see that so many of us on AAD clearly understand that austerity is not a mere error in judgement but is a deliberate game plan, making the most of whatever excuses are available.

We now have a debt-based currency. Trading in it is very profitable. Austerity is profitable to the elite.

The bigger problem though is that joe public can't see past the illusion, they resign themselves to the beating that they are being given, so the beating continues.

Not us though, we are turning the whips back on to whippers. It may or may not change government policy but it certainly gives us more control in our personal lives.

Keep up the good work everyone, I draw more strength from this sight every day.
THANKS TO ALL ON AAD