Two giants in economic thought squared off last night to debate their competing economic theories on Bloomberg TV. On the Right was Congressman Ron Paul, champion of extreme libertarianism, and on the Left, Paul Krugman the most prominent advocate of Keynesian economics. The two argued about the role of the Federal Reserve, whether the debt needs to be cut, and how America can avoid the crisis currently sweeping Europe.
Paul argued that the Federal Reserve was responsible for the country's economic woes, that debt levels were dangerously high, and that markets should be self regulated rather than controlled by government. Krugman countered that without government intervention, the economy would collapse completely, and contrary to prevailing wisdom, the current debt levels are not unmanageable.