Monday, November 14, 2011
Paul Krugman, Larry Summers Take Their Corners for Munk Debate
Due November 18, 2011. How do Krugman and Summers agree? On what policies do they disagree? In your opinion, who makes the better argument.
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Krugman and Summers agree that the United States economy needs to improve. These two economists believe that an increase in demand will surely bring us out of this economic mess. Both economists are aware of the Great Recession that we just faced and how we must approach the situation. Both are Democrats but still differ on some of their economic views and the extent of those views. They disagree on the comparison of the current US economic situation to the previous economic state of Japan. Summers does not think that we are in a "lost decade" as Japan was in the 1990s. Krugman, on the other hand, believes that the North America in general is facing the negative economic status of Japan at one time with "high unemployment and slow growth." Summers sees that the US institutions can better the economy while Krugman sees that the solution might lie in the Federal Reserve. Personally, Professor Summers makes a better argument. He points out that we are not in the "lost decade" and that we are not that similar to Japan. Summers seems to show more faith in the United States and its ability to come back as a strong economic power. He points out that the high unemployment statistics are a problem and recognizes the flaws in our country's economic policies.
ReplyDeleteBoth Krugman, and Summers are democrats and both of them acknowledge the economic strain that we have been in. They both see some improvement although Summers seems to see more than Krugman. Their main difference comes with their outlook on the future of America. Krugman, obviously the more practically one, sees that we are not going anywhere good fast and he predicts that we are aproaching depression status. Summers feel that we are improving, and with time that economic struggles will be a thing of the past...How niave of him. I believe in Krugman's veiw more but I ddont think we will be aproaching a depression, I feel that we will just need to wait longer in order to see any substantial improvement.
ReplyDeleteBoth of them are democrats who think that it is essential to improve our economy. Krugman claims that we need to act together or do something to save our economy. Otherwise "we could enter a downward spiral of uncertainty, financial instability, and a collapse in global demand.” He argued for a more aggressive response. Summers claims that US people are still wealthy and our living standards are still high compared to the people live in China or India. He argued that what the government did was enough or sufficient I should say to avoid the Great Recession to turn into the Great Depression. In my opinion, I agree with Krugman because I don't think the government has done enough to save our economy and we need a more aggressive recipe.
ReplyDeleteBoth economists are democrats, and note that the economy really needs to improve from its current state. The two disagree in terms of the role that the Federal Reserve should play in helping the economy recover. Krugman believes that it could raise inflation rates in small incraments, ultimantly ending the debt burden, while Summers believes that such a plan is heretical. In my opinion, I believe Summers makes the better argument. I think that if the Federal Reserve were to raise inflation, it would just create a bigger mess than we're already in, because it would cause an uproar among the public.
ReplyDeleteKrugman and Summers agree that our economy is a downward spiral and the solution to the situation is to increase demand. They also see little being done on reducing the high unemployment rates. However, Krugman and Summers disagree on the intensity of the situation. While Krugman compares our situation to Japan's in the 1990's, characterized by debt and weak consumer spending, Summers sees the situation far less worse. Summers contrasts both situations by comparing our living standards and Japan's , saying ours is much better off. Summers also mentions that Japans GDP was 40 percent below what it was supposed to be, something we have not reached.
ReplyDeleteBoth economists seem to be a little drastic in their viewpoints regarding our present and our future, but Krugman seems to establish the better argument. He points out our flaws and exaggerates them to prove a point.
Both Paul Krugman and Larry Summers are democrats who agree that we are facing a strain in our economy. They both think that the u.s. needs to change the way it approaches the down economy. They disagree on our economy being in a "depression". Krugman has very drastic views on the economy and thinks we are almost in a depression, he calls it a lesser depression. This is something Summers disagrees with. He doesnt believe that the u.s. faces a Japan style era of high unemployment. In my opinion, Krugman makes a better arguement. He is stating opinions of his own and backing them up with the facts. His opinions are extreme, but make sense.
ReplyDeleteKrugman and Summers are similar in the fact that they are both agree that out economy is decreasing. They agree that our improvements must be made in our economy. The two differ in the intensity by which they describe America's current economic state. Summer believes that the economy is doing not doing as bad as Krugman says it is. Krugman has a more exaggerated view of the current economic state. I personally believe that that Krugman has a better argument. He makes more sense and provides believable warranted support.
ReplyDelete