Wednesday, February 13, 2013

Krugman and Jobs








     Krugman's solution to the economic problems is to have the government create new jobs. Krugman is addressing the fact that the government should be creating jobs because jobs are important to Krugman because he believes that giving people jobs is the way in which people survive. Krugman proposes that the government creates jobs to have us back at full employment. His recommendations reflect a public economic solution because he sees how the government policies are affecting job creation.
Paul Krugman proposed that we use the same solution that President Roosevelt did to get the United States out of the depression. However, the opposing argument is that Roosevelt did not really bring us out of the Depression. It was the war, in which so much money was spent, you couldn't help but put people to work. Krugman wants the government to take the same actions that were took during the Great Depression in order to end the "depression" which we are currently facing. Unemployment has skyrocketed  regardless of what Krugman and other Keynesians believe, there is absolutely no way to conclude that money spent by government has had a positive economic impact at least as it pertains to job creation. http://newsbusters.org/blogs/noel-sheppard/2011/09/05/krugmans-delusion-past-year-good-test-theory-cutting-spending-creates#ixzz2Kt6GQAWD 
Paul Krugman also suggested that the government create a trillion dollar coin in order to pay off their debt. The opposing idea to this other suggestion of Krugman is, If governments or  really can create wealth simply by creating money, why does poverty exist anywhere on earth? If Federal money creation really works, and does not create inflation, why haven’t Americans gotten richer as the money supply has grown? Krugman wanted Obama to read his book before his inauguration and to pass a legislation that will make the government create jobs to have the nation at 5% unemployment which is what he considers to be full employment. http://www.goldismoney2.com/showthread.php?42657-Ron-Paul-blasts-Paul-Krugman-and-the-Trillion-coin
My opinion on Krugman's solution is it seems believable but how does he propose that the government create jobs? He is saying that the government should create more jobs but he isn't giving a direct solution as to where he proposes that he put these unemployed people to work. To put millions of people to work like the United States did in the 30's would mean that there would need to be a need for jobs like in the case of a war where people are needed to produce weapons and other supplies.
The argument which I agree with is Krugman's. I believe that if the government does create more jobs, more people wont be dependant on the government aid such as Food Stamps (SNAP), WIC or public housing. More people would be able to support themselves and their family using the money they are earning and not the money that the government provides to them to barely get by. When people have jobs, the government would be able to tax their income and start gaining more money to help bring down the debt.
     The relevance between the two images based on Krugman's interview is that he believes that food stamps are the new form of a soup kitchen. Food Stamps are now just being handed out to anyone who needs help in the same way that food is handed out at a soup kitchen. But the fact of the matter is  that the people who have food stamps are still as desperate, they're getting by day to day with the aid of a trickle of government aid, just like the people who were on, standing in line at the soup kitchens in the 30's, but they're not visible. People are still suffering the same way according to Krugman you just don't see them lining up on the corners for food or selling apples for money.


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