“The world economy is in a nosedive, and understanding what I call "depression economics" - the weird world you get into when even a zero interest rate isn't low enough, and a messed-up financial system is dragging down the real economy - is essential if we're going to avoid the worst.” IfsWorldRealEnoughUnderstandingInterestEconomyWorstEssentialsLowsEconomicsRateFinancialZeroMessed UpInterest RateWorld EconomyFinancial System Author:Paul Krugman
“What the Depression teaches us is that when the economy is so depressed that even a zero interest rate isn't low enough, you have to put conventional notions of prudence and sound policy aside.” EnoughSoundInterestTeachEconomyPolicyLowsNotionRateZeroConventionalPrudenceInterest Rate Author:Paul Krugman
“Most people, I suspect, still have in their minds an image of America as the great land of college education, unique in the extent to which higher learning is offered to the population at large. That image used to correspond to reality. But these days young Americans are considerably less likely than young people in many other countries to graduate from college. In fact, we have a college graduation rate that's slightly below the average across all advanced economies.” PeopleMindStillsCountryFactsRealityAmericaYoungUsedEconomyLandCollegeHigherUniqueRateAveragePopulationThese DaysSuspectsGraduatesOther CountriesCollege EducationCollege GraduationHigher Learning Author:Paul Krugman
“Until the Great Depression, most economists clung to a vision of capitalism as a perfect or nearly perfect system. That vision wasn’t sustainable in the face of mass unemployment, but as memories of the Depression faded, economists fell back in love with the old, idealized vision of an economy in which rational individuals interact in perfect markets.” FacesIndividualMemoriesPerfectVisionEconomyMassCapitalismRationalUnemploymentEconomistFadedGreat Depression Author:Paul Krugman
“Our grandfathers lived in a world of largely self-sufficient, inward-looking national economies - but our great-great grandfathers lived, as we do, in a world of large-scale international trade and investment, a world destroyed by nationalism.” WorldSelfEconomyTradeInvestmentInternationalScalesDestroyedSufficientNationalismGrandfatherInwardSelf SufficientLarge ScaleGreat GrandfatherInternational TradeNational Economy Author:Paul Krugman
“What saved the economy, and the New Deal, was the enormous public works project known as World War II, which finally provided a fiscal stimulus adequate to the economy’s needs.” WorldNeedsWarDealsKnownEconomyProjectsSavedEnormousWar Of The WorldsWorld War IiWorld War IAdequateStimulusNew Deal Author:Paul Krugman
“Asset bubbles have happened even without not-so-easy money. And, in a depressed economy, where alternative uses of money are not great, people are going to bid up the prices of profitable corporations and stuff like that.” PeopleUseEasyStuffEconomyHappenedAlternativesCorporationsAssetsBubblesProfitableGreat PeopleEasy Money Author:Paul Krugman
“I've always believed in expansionary monetary policy and if necessary fiscal policy when the economy is depressed.” IfsEconomyPolicyAlways BelieveMonetaryMonetary PolicyFiscal Policy Author:Paul Krugman
“Consumer spending is now plunging at serious-recession rate ... even if the rescue now in train succeeds in unfreezing credit markets, the real economy has immense downward momentum. In addition to financial rescues, we need major stimulus programs.” IfsNeedsRealEconomySeriousSucceedMajorsProgramTrainRateFinancialCreditSpendingConsumersImmenseRescueMomentumStimulusRecessions Author:Paul Krugman
“What our economy needs is direct job creation by the government and mortgage-debt relief for stressed consumers. What it very much does not need is a transfer of billions of dollars to corporations that have no intention of hiring anyone except more lobbyists.” NeedsDoeGovernmentJobsEconomyCreationDirectDollarsIntentionDebtBillionsConsumersCorporationsReliefStressedMortgageTransfersHiringLobbyistsJob Creation Author:Paul Krugman
“In short, it's a great economy if you're a high-level corporate executive or someone who owns a lot of stock. For most other Americans, economic growth is a spectator sport.” IfsSportsGrowthWealthLevelsEconomyEconomicCorporateExecutivesSpectatorsEconomic GrowthHigh Level Author:Paul Krugman
“We know that advanced economies with stable governments that borrow in their own currency are capable of running up very high levels of debt without crisis.” KnowsGovernmentRunningLevelsEconomyCapableEconomicsCrisisDebtStableCurrencyHigh Level Author:Paul Krugman
“In fact, I'd say that the sources of the economy's expansion from 2003 to 2007 were, in order, the housing bubble, the war, and - very much in third place - tax cuts.” WarPhilosophyFactsPoliticalOrderEconomyCuttingSourceTaxesEconomicsThirdsBubblesExpansionHousingTax CutsThird PlaceHousing Bubble Author:Paul Krugman
“The growth of the Internet will slow drastically, as the flaw in 'Metcalfe's law'–which states that the number of potential connections in a network is proportional to the square of the number of participants–becomes apparent: most people have nothing to say to each other! By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's.” PeopleHas BeensStatesLawGrowthNumbersEconomyClearGreaterInternetConnectionsMachinesImpactFlawsSquaresParticipantsFaxFax Machines Author:Paul Krugman
“Europe is often held up as a cautionary tale, a demonstration that if you try to make the economy less brutal, to take better care of your fellow citizens when they're down on their luck, you end up killing economic progress. But what European experience actually demonstrates is the opposite: social justice and progress can go hand in hand.” IfsTryingEndsHandsCareSocialJusticeEconomyProgressEconomicCitizensEuropeOppositesFellowsSocial JusticeLuckKillingTalesBrutalDemonstrationHand In HandEconomic ProgressCautionary Tales Author:Paul Krugman
“Middle-class societies don't emerge automatically as an economy matures, they have to be CREATED through political action.” ActionPoliticalClassEconomyMiddleMiddle ClassPolitical Action Book:The Conscience of a Liberal: Reclaiming America From The Right Source: The Conscience of a Liberal: Reclaiming America From The Right
“There has been plenty to criticize about President Obama’s handling of the economy. Yet the overriding story of the past few years is not Mr. Obama’s mistakes but the scorched-earth opposition of Republicans, who have done everything they can to get in his way - and who now, having blocked the president’s policies, hope to win the White House by claiming that his policies have failed.” WayYearsHas BeensDoneStoriesEarthPastHouseWinningPresidentWhiteMistakeEconomyPolicyRepublicanPlentyOppositionCriticizeWhite HousePresident ObamaBlockedScorched Earth Author:Paul Krugman
“In short, what the living wage is really about is not living standards, or even economics, but morality. Its advocates are basically opposed to the idea that wages are a market price-determined by supply and demand, the same as the price of apples or coal. And it is for that reason, rather than the practical details, that the broader political movement of which the demand for a living wage is the leading edge is ultimately doomed to failure: For the amorality of the market economy is part of its essence, and cannot be legislated away.” IdeasReasonPoliticalEconomyMovementMoralityDemandStandardsEconomicsEssenceEdgesDetailsDeterminedPracticalsApplesDoomedWagesCoalMinimum WageMarket EconomyLiving WagePolitical MovementsSupply And DemandAmorality Author:Paul Krugman
