REVIEW: “The New York Times” published on 94 Nobel laureate in economics, Princeton University economics professor – Paul Krugman (Paul Krugman) commentaries. Authors noted in the text of the United States is now the major economic policy errors committed is to ignore the crisis caused by high unemployment, and urged Obama to Government attaches importance to employment. The following is the article Excerpt:
on Friday, two figures shocked the entire Washington. A number is zero, an increase of eight new U.S. jobs is zero; another number is two, United States ten-year Treasury rate to 2%, have reached historic lows.
when the economic crisis after the initial growing pains in the past, the focus of policy discussions in Washington is no longer the problem of unemployment, but because of the high budget deficit caused by the so-called risk. Experts and the media insisted that the biggest problem facing the United States now is that investors will stop buying U.S. bonds. Such as 20095, the Wall Street Journal said that bond investors are prepared to aggressively counter-offensive. Is to tell the readers, the Obama administration unprecedented wanton spending, interest rates will rise. But this editorial was published, the interest rate is 3.7% to yesterday, interest rates have only only 2%.
I do not want to divert attention from long-term budget of the United States interest in the issue, if you look at the next two on the U.S. financial expectations, do people Nie Bahan, mainly because of rising health care costs. But the experience of the past two to verify some of us started talking. We are now using deficit policy is not a problem, deficit spending can also help reverse the economic downturn.
Washington has long been a non-existent threat of plague, and now it can be really in trouble, high unemployment is swallowed our economic foundation. From some of the rhetoric of the population, you will not know this. Past a good test of this theory: cut government spending can create jobs. Concerns about the deficit for the second round of economic stimulus plan was frozen, with the reduction in spending, we are now experiencing economic contraction. The reduction in federal aid, state and local governments cut a lot of projects, and a large number of layoffs, most of which are school teachers. Can be baffling, the private sector remain indifferent to such layoffs, and would like to see the government’s austerity policies, hiring staff in large quantities.
and maybe some people began to worry about government regulation or higher taxes would stifle business development, but only right-wing fantasy. Many survey, the lack of demand (due to the reduction in government spending has become more serious), is now the main problem facing business, and government regulation and taxation are not considered within the scope. For example, Kela Qi recently reported a number of randomly selected small business owners conducted a survey that they are most worried about is not government control, while almost no one complained about taxes, now the U.S. after-tax corporate profits are at record levels.
so short-term budget deficit is not a problem, but the lack of demand, spending cuts only make it worse. For Obama plans a speech on the economy published I am ready to make the following recommendations. Let us first clear three questions: How do we create jobs? Congressional Republicans will agree on what? Taking into account today’s political situation, the president should put forward any kind of program?
the first question, the federal government’s spending a lot of job creation, such as repair and upgrade infrastructure to increase investment in the United States; while increasing state and local government assistance to enable them to stop dismissal of teachers.
However, the Republicans will agree on what? Very simple, nothing will be agreed. They would oppose any motion proposed by Obama, even if significant for the economy. Or should I say, especially those who can help the economy motion, benefit the Republican Party because of the high unemployment rate.
this so difficult to answer the third question, the basic proposal because he will not be executed. Now he most needs to do is change the debate on the issues, so that Washington began to discuss employment issues and how the Government to help create jobs. To the national interest, particularly for tens of millions of unemployed, can not see the Americans hope to find a job, I hope Obama can do this.