Paul Krugman: End This Depression Now”
In his preface Krugman starts off by informing the reader of where we are currently with unemployment rate, a graph illustrates the plunge that both United States and Europe suffered during 2007 until early 2010. However where the graph diverges from one another in early 2010 when the American economy become reinforced with more jobs, while our European counter parts have suffered even more with their level of unemployment. The partial recovery that Krugman recalls started for Americans in 2010 was mostly influenced by two advantages that we have over Europe. First our single currency is backed by one government, meaning civilians in America can expect our government to still in force programs such as social security and Medicaid even during a financial crisis. Our second advantage that Krugman point out is the fact that Austrians never gained as much influence on America as it did in Europe. Krugman stated that looking forward America is still in a depression, a solution that Krugman states would for the Fed to in force more aggressive policies to convince investors that it will allow somewhat higher inflation in the medium term. No doubt the road to fiscal stimulus will be politically difficult, Krugman argues that it is still the people’s power to end this depression.
Krugman’s introduction gives the reader his standpoint on what his book intend to deliver, and that is to ask “What do we do now?” Krugman refers his ideas with that of John Maynard Keynes’s that we are in a standstill of economy recovery, and there’s no sign of a total recovery or a total collapse. Krugman believes we currently have the knowledge and technology to recover from this depression, and plans his course to outline that to the reader.
(1)-How Bad Are Things
In his first chapter Krugman informs the reader of the drought of jobs that still plague our country. He talks about involuntary unemployment, and...