Tuesday, January 6, 2009

I must have been reading his mind

In my last post I summed up what I had known for some time about the economy. Well without having read this article Mr Krugman tells it like it is if you will about our economic situation.

Paul Krugman's take on the economy

Remember he's a well respected economist. I'm not.


MRMacrum said...

Absolutely excellent in my opinion. Krugman paints a picture of what I see will happen also. America seems to already be settling in for hard times. What is needed is swift well thought out action and what Congress seems to be setting itself up for is a poorly conceived and too late weakened reaction. And who is leading the stupid side once again? Yeah the flipping Republicans. What a bunch of maroons.

One thing I never considered was Krugman's explanation of why handouts (rebates, tax cuts, etc) are not held to the same standards as public investment. Why? Might it be that investment as he puts it are looked at as if from a business decision and if handouts were scrutinized in the same way, they would instantly be thrown out as a bad idea? I have never liked it whrn the government gave me money back. Never. Not once. It never made sense to me when that money could have been salted away or applied to the debt or some other avenue that would garner bigger gains than another TV in the den. Rebates in my opinion were like trinkets held out for us to be side tracked with.

Demeur said...

Well that's kind of the problem with rebates and stimulus checks. Most people at that point were up to their eyeballs in debt or were afraid to spend because it was an indication of worse times ahead. I know I put that money in savings because I could see worse times ahead.

I truely believe that we need to start rebuilding the country. Rather than spend on bombs or some worthless paper we'll have something to show for it after all is said and done.
I'd much rather have a job than another extention of unemployment benefits or another rebate check. When you get people back to work they start paying back into the system i.e. taxes, medicare and S.S. Not so with rebates.

dana wyzard said...

IF we each had a business that went belly up, would we expect to get bailed out by the government. HA! I cannot believe that NO ONE sees that the problem with big corporations needing money is the fact that all the profits go into the management's pockets.

If I were king. . . I mean president, I would DEMAND that if the management truly wants to save their company and the "little folks" who work for them, then corporate should cut THEIR paychecks and allow the real workers to benefit from some extra pay for a change.

After all, the companies were made on the backs of the workers.