Friday, February 3, 2012
Krugman: We Are Already in New Great Depression
Due 10 February 2012. View the video. Define austerity. (yes, look it up!!) What does Krugman propose for Europe? What does he propose for the U.S.?
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In economics, austerity is a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Austerity policies are often used by governments to reduce their deficit spending while sometimes coupled with increases in taxes to pay back creditors to reduce debt.
ReplyDeleteSpain has an unemployment rate of 23% and Italy is in a serious recession but there is not much going on to improve their economy. Krugman thinks that Europe should not insist on austerity but instead they need the ECB (Europe Central Bank) QB (quantitative easing) and higher inflation target. As for the United States, Kurgman proposes that we should have more quantitative easing, purchase more broader range assets, and the inflation target should be higher.
He thinks we are in a DEPRESSION! WHAT!? Austerity- policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Austerity policies are often used by governments to reduce their deficit spending while sometimes coupled with increases in taxes to pay back creditors to reduce debt. Wikapedia for the win! It sounds as if Europe is in a LOT of trouble. They do have large numbers, compared to the United States, for unemployment, and they believe austerity is their solution. Krugman thinks they are stupid and that austerity would only hurt them more. He talks about how the Europe Central Bank would help them as well as a higher inflation. They are only at 2% for their inflation rate and Krugman thinks that at this point in the game, they should have a higher rate. For the United States, he believes that quantitative easing would help our country as well as broader range of assets. HE says that in 15 years our country will be back to normal…. This is not ok.
ReplyDeleteAccording to several online resources combined on Wikipedia, "austerity is a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Austerity policies are often used by governments to reduce their deficit spending while sometimes coupled with increases in taxes to pay back creditors to reduce debt." Krugman describes Europe's situation and it seems to be quite problematic. He suggests a Europe should have a Central Bank. Also they must have a higher inflation rate.
ReplyDeleteAusterity is a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Krugman thinks that Europe should not use austerity but it should have a central bank. He thinks that the U.S. needs quantitative easing and that would help out our economy.
ReplyDeleteWikipedia defines austerity as "a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided." Krugman sees negative economic situations in Europe as shown by high unemployment in such countries as Spain. He advises that Europe become austere and they need a "higher inflation target" as it is too low right now. He also sees a European central bank as important to implement in Europe. Krugman believes that we are in a depression, which is contrary to what I thought. I thought we were now in a recession. He proposes that the US have more quantitative easing and establish a higher inflation rate as well.
ReplyDeleteAusterity is defined as difficult economic conditions created by government measures to reduce a budget deficit, esp. by reducing public expenditure.
ReplyDeleteKrugman proposes that Europe should have austerity and they should have higher inflation till the point where they are developing better. He thinks that right now in the states that we are in a depression but not as bad as the 1930s, also he thinks we should increase inflation just like Europe.
Austerity is a policy that cuts deficits, lowers spending, and reduces the amount of public services provided. Krugman believes that Europe, which is going through many harsh economic circumstances, should not engage in this, and should instead increase the inflation rate and instate a central bank.
ReplyDeleteAusterity is a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Krugman says Europe should have a central bank and higher inflation rate. He also beileves the U.S. should have quantative easing and a higher inflation rate as well.
ReplyDeleteAusterity is a policy that cuts deficits, lowers spending, and reduces the amount of public service provided. Krugman considers Europe's economic situation at the moment to suggest they do not participate in such a sport. He would much rather they increase the inflation rate and create a central bank.
ReplyDeleteAcoording to everyone else austerity is "a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided." Krugman wants Europe to refrain from austerity and use the central bank. He wants America to use quantitative easing higher inflation but I think thats dumb. Maybe I will understand why its not later on in the class.
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