I love Paul Krugman’s analysis on economy and yes, I’m a regular reader of his column in NYT. Such a good insight on current economic issue and the latest article by him is another masterpiece on assessment of US’s wrong policy of debt deficit reduction. It’s not a debt deficit reduction that should be pursued, but job creation it’s the utmost priority to fix the ailing economy. In order to create the jobs, as the private sector hold back the spending due to uncertainty, government should take the role to spend to keep the engine running. Without any spending by either private or public sector, it could cause a catastrophic consequence and the most affected would be normal people on the street.
Again, politic is the culprit that causes the wrong policy to be pursued. Average Americans that support the idea of debt deficit reduction always associate the debt with their own experience in managing personal finance, the more debt, the more screwed up your life would be. But one’s should not associate this in the same context. Personal finance is very much different as compared to Government finance. The role of government is to ensure the livelihood of the citizens (in this case 300 millions Americans) is not stopped due to unemployment. In fact, without job creation, the government’s revenue will be reduced in long term due to less tax revenue. Therefore, the worry is not how to tackle debt deficit reduction, but how to create jobs. Looking at reader’s comment is also exciting. One of the most intriguing comment is analysis of service-based economy does not work. It’s true to some extent; I believe economy should be diversified equally in terms of agriculture, manufacturing and services. The problem in US, they believe in service-based economy more and that’s why manufacturing is moved to other cheap countries like China. Also, there is argument on technology eliminates jobs. While it’s true to some extent, but technology in fact does create other high-income jobs for people that involve in creating and maintaining the technology. Labor extensive jobs will be reduced and replaced by more productive automation and thus freed up the resources for more productive jobs. So I don’t believe the technology eliminates jobs. Anyway, if you are interested on Paul Krugman’s weekly analysis, you can subscribe to below feed, happy reading guys!
Again, politic is the culprit that causes the wrong policy to be pursued. Average Americans that support the idea of debt deficit reduction always associate the debt with their own experience in managing personal finance, the more debt, the more screwed up your life would be. But one’s should not associate this in the same context. Personal finance is very much different as compared to Government finance. The role of government is to ensure the livelihood of the citizens (in this case 300 millions Americans) is not stopped due to unemployment. In fact, without job creation, the government’s revenue will be reduced in long term due to less tax revenue. Therefore, the worry is not how to tackle debt deficit reduction, but how to create jobs. Looking at reader’s comment is also exciting. One of the most intriguing comment is analysis of service-based economy does not work. It’s true to some extent; I believe economy should be diversified equally in terms of agriculture, manufacturing and services. The problem in US, they believe in service-based economy more and that’s why manufacturing is moved to other cheap countries like China. Also, there is argument on technology eliminates jobs. While it’s true to some extent, but technology in fact does create other high-income jobs for people that involve in creating and maintaining the technology. Labor extensive jobs will be reduced and replaced by more productive automation and thus freed up the resources for more productive jobs. So I don’t believe the technology eliminates jobs. Anyway, if you are interested on Paul Krugman’s weekly analysis, you can subscribe to below feed, happy reading guys!
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