Wednesday, February 27, 2013

Krugman on the Economy



America has been in a recession for the last 6 years.  When President Obama was elected in 2008 he promised to improve our economy however, not much has changed. Paul Krugman is an economist who believes that government should play a larger role in changing the economy.  Krugman believes that the government should help end the recession by creating jobs for people.  He believes this will work because many people in America are too dependent on the government.  People are dependent on the government through assistance programs such as EBT, unemployment checks, etc.  Krugman's policy is that if the government creates more jobs for everyone then less people will have to rely on the government's assistance programs.  Less reliance on the assistance programs causes more spending which equates to a stronger economy.


This will be all good and dandy except for the fact that it doesn't work this way.  This is way too simple of an approach and is highly flawed.  The government cant just create jobs for the heck of creating them.  They have to have a purpose to a vast majority of society, not just the employees.  If the government creates jobs for the heck of creating them that serves no real purpose, it becomes similar to other government assistance programs.  The money being spent to pay the employees come from the employer which will be the government so we are back at the same situation of the government spending its money and getting nowhere.  The job has to be self-sustained and if the government is going to constantly pumping its funds so the employees get paid then the recession will carry on.  The government is, quite simply, incapable of creating such jobs.

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