**Note: This is the response to the other class’s blog prompt rather than ours because I will be attending the prison talk next week**
Thinking of who would be good to bring to Bucknell to speak, I naturally thought of someone who was consistent with the topic that we have been reading about: the Great Recession. After reading Paul Krugman’s article “How Did Economists Get It So Wrong?” Peter Schiff came to mind. I have study a great deal about the housing crisis and discovered Peter Schiff during my studies. He is one of the few people who predicted the crisis.
Peter Schiff is an investment banker and the CEO of the broker-dealer Euro-Pacific Capital. He is not considered an ‘economist’ but he is very outspoken about his economic views. “The Peter Schiff Show” is his podcast where he talks about politics, finance, and the economy. He has a blog, is a published author, and appears on many financial and news television stations. His claim to fame came in 2006 when he predicted the housing bubble. On Fox News in 2006 he said “What’s going to happen in 2007 is that real estate prices are going to come crashing back down to Earth.” He was so bearish on the US economy that he became known as “Dr. Doom”, though that nickname now resides with a different economist. Schiff is a strong supporter of the free-market Austrian School of economic thought. This puts him in direct disagreement with the Keynesian School which Paul Krugman belongs to. They have butted heads on a number of occasions and I have included a more recent article from each showcasing their arguing below.
I believe that he would be a very interesting speaker to have a Bucknell especially in a debate format. I would be interested to see a Bucknell economics professor, with differing views, question Peter Schiff’s views and vis versa. There have surely been cases where Peter Schiff has predicted things that have not come true, so his views are certainly up for debate. Most people would think that Peter Schiff’s beliefs and views on the economic state of the world are fairly radical so it would be a new and interesting experience to many. It also is convenient because his executive producer, Tom Elliott, is a Bucknell alumnus. Below I have included a Youtube video which splices together appearances of Peter Schiff in 2005 and 2006 explaining his prediction. The most important part, in my opinion, is at 0:50-2:06.
Article by Paul Krugman: http://krugman.blogs.nytimes.com/2011/12/15/inflation-predictions/
Article by Peter Schiff: http://www.europac.net/commentaries/krugman_strikes_again
- Schiff, (Hyper)inflation, and the Fed . . . oh boy (anirrationalviewoftheirrational.wordpress.com)
- Expect More Inflationary Money Printing – Peter Schiff (missionmining.wordpress.com)
- Peter Schiff Doubles Down on Inflation Prediction (politicalcrazyness.tumblr.com)