Tuesday, October 9, 2012
The Truth About Jobs
http://economistsview.typepad.com/economistsview/unemployment/ Due 15 Oct 2012. Why does Paul Krugman state that we should be cautious even after the new unemployment numbers of 7.8 came out? Why should we be optimistic?
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Krugman states that we should still be cautious about the labor market because we should not put too much emphasis on one month's number, but rather on a long-term decline. He also states that we should be cautious because much of the republican party is rooting for American failure, because elections are coming up and they want Obama to be portrayed as a failure. However, we should be optimistic because the job report does suggest that the economy is getting better.
ReplyDeleteIn the article, Krugman claims we should not put too much emphasis on the one month's unemployment instead we should focus on the downward trend of the unemployment rate. None of this information should be taken as good or bad. He also declares the U.S. economy has a far way to go to make up the ground lost in the Great Recession. However, the employment data suggests the economy is slowly healing.
ReplyDeleteKrugman proposes that we should focus on the general trend of unemployment instead of a one month increase. The information should be taken for what it is, just an increase. It is neither good nor bad, and is not in any way an indicator of future unemployment rates. Although the data suggest a slow recovery, the US has lost a lot in the Recession that needs to be recovered.
ReplyDeletePaul Krugman states that we should continue being cautious, despite new optimistic numbers, because he says not to place too much weight on one number from a certain month. So, he says you should look at the longer term and a sustained period of time. By doing this, we would see that the unemployment rate has in fact been on a downward trend. Also, he states that Americans should be skeptical of the economic numbers considering the Republicans have blocked any legislation that Obama wanted to pass to improve the economy. That way, they make Obama and the economy look bad. Yet, Krugman states that we should be optimistic because the employment data shows an economy that is “slowly healing,” with its declining consumer debt and a housing revival that is moving the economy closer to full employment.
ReplyDeleteKrugman offers the caveat that, although the new unemployment numbers are cause for elation, we should not use the numbers of a month's increase or decrease as an indicator of economic recovery. Instead, he insists that it is necessary to look to the long term - the general trend of employment across a long period of time. Furhter, he identifies the method by which unemployment is measured and to me, it does not seem to be a reliable indicator of economic success. Krugman says that these numbers should not be taken to mean we are in any way in good shape, and thus to take them with a grain of salt. The optimistic side of this coin, however, lies in the fact that these numbers do indicate, on some level, that the economy is healing and recovering from the recent Great Recession.
ReplyDeleteKrugman states that we need to look at the whole picture and not just 1 months unemployment. Krugmam says we should focus on the trend of the whole graph and not just 1 month of it. This is not to be taken as good or bad and the whole economy shouldn't be based off of this one month of a decrease in unemployment. But the data does hint that the economy is slowly recovering from the rescission.
ReplyDeleteLogically, Krugman proposes that unemployment rate is something that should be analyzed from a long-term perspective. One months dip in unemployment rate isn't something to shout about but rather constant decrease in the percentage of unemployment is what we should be hoping for. He advises that we should be cautious because many factors play a role in this situation that is subject to change. However, information suggests that we are headed to a better economic state than that of which we have been in. This slow healing of the economy which Krugman refers to is what we should be optimistic about.
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ReplyDeleteKrugman explains that one months unemployment rate is not a fix all situation in our economy, and that this number is better but still not where we need it. He offers us optimism on the fact that unemployment rates are trending on a general decrease over the recession period and that the economy is slowly repairing. He reassures us we have to wait out the rain and eventually if we don't get over excited we will fix our system.
Krugman states that we should not be so happy that it is down to 7.8% because that is only for one month. He says we should actually focus on the unemployment going down progressively and making a general decrease in unemployment. The slow process of waiting for the unemployment to go down progressively is what Krugman says we should be optimistic about and I believe that the economy will get better if we are just patient.
ReplyDeletePaul Krugman suggests an alternative view to the new job numbers, a more realistic and down to earth point of view. Krugman says that we should view these numbers as an indication of gradually healing economy, not a conspiracy as so many on the right are suggesting. This is the reason why we should be optimistic, because these numbers show us that past policies have been having a positive effect on our economy, and depicts a gradually recovery. But, Krugman also suggests that we still need more helpful policies to get the economy to a better place; that the policies already in place are not enough, and that we should stop now just because of this drop in the unemployment rate.
ReplyDeletePaul Krugman states we should be optimistic because the unemployment rate has slowly been dropping over the past months showing an economy recovering from the Great Recession. However, Krugman tells us not to place too much emphasis on this number but rather on the downward trend of unemployment rate in our economy. We should still be cautious however because we are still short of where we should be and have a lot to make up. Also, the Republican's support for a failing economy to prove Obama as a failure don't help, thus creating more of a need to be cautious.
ReplyDeletePaul Krugman states that we should be cautious even after the new unemployment number of 7.8 came out because its still far short of where our economy needs to be;the job market still has a long way to go. We should be optimsitc because it shows us that unemployment has been on a substained downward trend. It suggests that the economy is slowly healing and putting us back on the road to full employment.
ReplyDeleteMr. Krugman states that we be severely careful even though the new numbers have been decent. He says we shouldn't put too much faith in the calculations of one month.By looking at a longer period of time, we can notice that the unemployment rate has been going down. Krugman continues by saying that as a nation, we should double check numbers economically. Krugman finally says that the economy is slowly healing through the declining debt, etc. Our economy is on its way to full employment.
ReplyDeleteKrugman states that Americans should be cautious of the the calculation just after one month, it is not representative of everything that is to come. However, he indicated that we should be the slightest bit optimistic about the fact that the job market is improving and that we are on our way to full employment down the road.
ReplyDeleteKrugman believes we should still be cautious about the unemployment rate and not put too much emphasis on the numbers of only one month. To notice a difference, one would have to look at the rate over a long period of time. However, we should still be optimistic because it shows the economy is slowly getting better.
ReplyDeleteKrumgman states that we should focus us the long-term, rather than one month's numbers. One month might have special circumstances but this is not a representation of what is really happening. He also states we should be optimistic about the fact that the economy is slowly improving through declining nation debt and such.
ReplyDeleteKrugman infers that we should be cautious of the unemployment rate of 7.8 for the fact these are the numbers only after one month. We should continue to be optimistic of the unemployment rate because we don't know where it will be down the line, but it is slowly improving. The job market has quite a distance to go before it is where we want it to be so we shouldn't expect debt to decline over night.
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