Tuesday, February 8, 2011
Nobel Prize Winning Columnist Offers Perspective on Economy
For grades due Feb 18,2010. What is Krugman's suggestion for improving the economy? Why do you agree or disagree?
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Welcome. This is a blog dedicated to the students enrolled in the CSHS AP Economics classes. Click on the title of the article, read, and click comment.
Krugman's suggestion for the economy is to inject even more government money in to the economy in order to reduce the rampant unemployment in the country. As an advocate of fiscal policy, Krugman holds that the best way to control the macroeconomy is through controlled spending and taxation with a large federal deficit. Krugman's plan has worked before (the Great Depression, i.e. WPA, Tennesee Valley Authority), but many doubt that this adrenaline rush for the economy would succeed again, and doing so risks trillions of dollars that the federal government does not have to spend. I agree that more stimulus money would be beneficial, but I believe that taxes must also be raised on the wealthy and military/social security spending completely redesigned.
ReplyDeleteKrugman's suggestion for helping the economy is to invest more money to help save the economy. I do agree with this because I think that sacrifices need to be made before results are shown. Furthermore, I also agree with this because I think unemployment is one of the main reasons that our economy is in a slump. As more people lose their jobs and/or can't find a job, they spend less money, thus helping themselves but not the economy.
ReplyDeleteFor some reason my AIM account is not working, but this is Celeste Lau.
ReplyDeleteKrugman suggest that the government needs to invest more money instead of less. He also suggests that the public sector should "step in" and begin building things such as roads, freeways, and bridges. This would create jobs and decrease the unemployment. I feel the government needs to make whatever steps necessary to help pull the economy upwards. Jobs need to be created so people who have previously lost their job can now make money and contribute to spending in the market.
ReplyDeleteKrugman's suggestion for improving the economy is to invest more money instead of less, that the public sector to step in and start the building of roads. I would agree with Krugman because his ideas would work in the economy (putting more money into it and creating jobs) which in turn gives more money to people to spend.
ReplyDeleteKrugman suggests that the government should be investing even more money that the current stimulus package. He is advocating fiscal policy, relying on ideas similar to FDR's policies in the Depression era. I think that the government does have a lot of power in improving unemployment and increased spending could not only create jobs but improve public facilites that have needed upgrading anyway, all of which will serve to benefit the economy.
ReplyDeleteHis suggestion is simply that the government should invest money in areas (such as infrastructure) that would establish employment opportunities for individuals, rather than putting that money off to the side. I think that, the government should increase their capability to stimulate the national economy.
ReplyDeleteKrugman suggested that the government should invest more money into building bridges and fixing slums and roads. That way, more people could be put into work while lessening the slumps that are not fit for human beings to live in. I think that it's the right suggestion but the problem is with a deficit as great as our nation has now, where would we get the money to just funds all these programs?
ReplyDeleteKrugman suggests to put more gov. money into the economy. I believe that he is correct and that this is one way to start helping the economy however we must also redesign are infrastructure so that we do not run the risk of falling back. We must endeavor to change both the social and economic aspect of our country through more work programs.
ReplyDeleteKrugman's suggestion is to invest more money into the economy which should in turn decrease the high unemployment rate. He believes that now is the time for the gov't to improve the nation's infrastructure. I agree with this because it would give millions of people jobs. These people can then spend more and help revive the economy.
ReplyDeleteKrugman, an advocate of fiscal policy, suggests that we increase government spending and allow the public sector to step in to create more buildings, roads, ect. Although I agree that we need to stimulate the economy and create more jobs through the increased help of the public sector, I feel as though our government may be spending a decent amount as is. Maybe we should redirect our funds, rather than increase them.
ReplyDeleteKrugman clearly agrees with the fiscal idea that more government spending will improve the country's macroeconomy. The money being spent on infrastructure will create jobs, and in turn decrease the high unemployment rates. I completely agree with Krugman because what our economy needs right now is more jobs and an overall stimulation. More money seems like the perfect way to do so. With more money, consumption will increase and the economy will reach equilibrium.
ReplyDeleteKrugman suggests that people need to invest more money into the economy. An increase in spending should be focused on the improvement of infrastructure, such as roads. This would in turn result in the creaation of more jobs and stimulate the economy further. I believe that Krugman's plan would lead our nation in the right direction if his ideas are fully adopted.
ReplyDeleteKrugman suggests that the government should spend more money, not less and put more money into building up the nations infrastructure. i agree with Krugman because it is only by increasing investment into the country that we can hope to come out of this economic downturn. also, building our infrastructure will have a resounding impact among society as a whole.
ReplyDeleteI agree with Krugman and his push for injecting more money into the economy. By putting out more money,jobs are created for the many unemployed workers which is growing at an insane rate. I feel that the government should take any step to improve the economy even if it means spend more right now so in the future the economy will return to normalcy.
ReplyDeleteKrugmans suggestion is to invest more money into the economy. I agree with Krugman because by investing more money, there would be more jobs in the economy. By stimulating the economy, our country will start to heal and recover.
ReplyDeleteKrugman's suggestion for the economy is fiscal policy, which is to put more government money in to the economy in order to reduce the unemployment in the country. Krugman believes the best way to control the macroeconomy is through controlled spending and taxation with a large federal deficit. This plan has worked in past historical depressions, but my main concern is that you can only throw away so much stimulus money. It seems like we keep cutting taxes and spending more money. Sure some people would benefit short term, but I believe that taxes must also be raised and we need to find a way to stop spending so much money. The government can only do so much and people need to take initiative. The government has provided a great deal of help, but they can't fix it with so many discouraged workers who plan on living forever in debt and on food stamps.
ReplyDeleteKrugman uses his ideas for fiscal policy as a suggestion to improve the economy. He wants the government to spend more in stimulus hoping that the unemployment rate will decrease. I would agree that this could work considering it worked for the Great Depression except I feel we are more greedy and coniving these days so the extra money may just be taken by corporation CEOs and leave the economy in even worse shape. If there is a way to stop that occurence from happening I beleive Krugman's idea would work out well for at least a few years until another baby boom or the soldiers return from Iraq and there are more people returning to or beginning the labor force.
ReplyDelete