| cheapbag214s |
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| Joined: 27 Jun 2013 |
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| Location: England |
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Paul Krugman on ABC's This Week,[link widoczny dla zalogowanych]
As much as I disagree with Paul Krugman,[link widoczny dla zalogowanych], I've come to respect him more than most on the left because he sticks to his guns and actually seems to believe what he says and willing to stand firm. Krugman has not veered from his insistence our economic problem is one of insufficient demand and that the stimulus was too small. There's the possibility Krugman knows he's incorrect and simply promotes statism for the sake of power and control,[link widoczny dla zalogowanych], and that he's being stubborn beyond reason,[link widoczny dla zalogowanych], but he appears to believe his Keynesian position. The problem with his position is that it doesn't answer some important questions -- the first question being that if the stimulus was too small,[link widoczny dla zalogowanych], how can this be determined if it hasn't all been spent?
The second question has to do with stimulated,[link widoczny dla zalogowanych], short-term demand and is a two-part question -- will an infusion of money into the economy give consumers confidence to buy big ticket items and businesses confidence to expand and hire? It seems to me that consumers and businesses are looking for long-term confidence that government actions will not interfere with long-term plans and contracts. If the mid-term elections create a split government,[link widoczny dla zalogowanych], this might give businesses the confidence that regulations and policies,[link widoczny dla zalogowanych], interference in general,[link widoczny dla zalogowanych], will slow to a crawl,[link widoczny dla zalogowanych], and consumers might feel more secure about going into debt,[link widoczny dla zalogowanych], although they will probably be cautious for quite a while.
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