Feeds:
Posts
Comments

Posts Tagged ‘Dr. Paul Krugman’

As it turns out, however, to make sense of new and strange phenomena, one must be prepared to play with ideas.  And I use the word “play” advisedly: dignified people, without a whimsical streak, almost never offer fresh insights, in economics or anywhere else.
   —    Paul Krugman
From the introduction to his book: “The Return of Depression Economics
.
On This Day In:
2016 And Fathers, Sons
2015 My Suspect Confidence
2014 Disguised Blessings
2013 Be
2012 The Only Way to Win
2011 Honest Writing

Read Full Post »

The media are desperately afraid of being accused of bias.  And that’s partly because there’s a whole machine out there, an organized attempt to accuse them of bias whenever they say anything that the Right doesn’t like.  So rather than really try to report things objectively, they settle for being even-handed, which is not the same thing.  One of my lines in a column — in which a number of people thought I was insulting them personally — was that if Bush said the Earth was flat, the mainstream media would have stories with the headline: ‘Shape of Earth — Views Differ.’  Then they’d quote some Democrats saying that it was round.
   ―    Paul Krugman
.
On This Day In:
2016 Control In The Age Of Entanglement
2015 Okay, Maybe Not Ceaseless
2014 Can Do
2013 Are You Helping?
2012 Inside All Truth Is A Vacuum
2011 So, Whom Are We Trying To Fool Then?

Read Full Post »

The Return of Depression Economics (and the Crisis of 2008)”  (2009©)  —  book review
This book is authored by Dr. Paul Krugman, who won the Nobel Prize in economics in 2008.  That’s kind of an easy way to validate that he knows what he’s talking about in terms of economics.  I actually completed this book earlier in the month, but have just been too lazy to get around to this review…
Basically, the good doctor is a progressive / liberal economist from the Keynes / Galbraith school of government “interference” in the free market to both stimulate the economy and restrict bad business practices (i.e. monopolies).  This means, when the inevitable market slow-down occurs, the author feels it is the government’s job to step in and provide demand for goods and services which will keep the economy ticking along.  The failure to do so, the author states, results in a stalled or failing economy, which starts a self-fulfilling prophecy / death spiral of recession or depression.  To prevent the excesses of capitalism, he proposes, a stricter regulation of banks and non-bank money (credit) generators.  In theory, this decreases the size of economic bubbles and the resulting “crashes” which follow the inevitable bubble burst.
The bottom line appears to be that markets are subject to “bubbles”.  Bubbles are periods of overconfidence which directly result in price increases to the point of frenzy.  However, when the frenzy pauses to catch its breath, everything tends to go to hell in a hand-basket unless the government is willing (and sometimes it isn’t) to step in and save everyone’s bacon.  The buying frenzy then becomes a selling panic and the free flow of funds / capital means individual national economies can end up in very deep do-do, very quickly.
Final recommendation: highly recommended.  I recognize I am also a progressive / liberal who is predisposed to agree with the author’s opinions and arguments, but I found the basic arguments to be in agreement with my own experiences over the last 50 years.  The book is written in standard English for the “off-the-street” (non-economist) person to understand.  It is relatively short at under 200 pages and I found it to be a fairly fast read.  Well worth your time to understand some of why the world is functioning the way it does.
.
On This Day In:
2016 Election + 1 Month
2015 Dance And Sing
2014 A Measuring Stick For Progress
2013 Courtly Love Or Victory Over Habit
2012 Have We Met?
2011 Efficiently Useless

Read Full Post »

%d bloggers like this: