Paul Krugman Debt Is Good Analysis

The year is 2009 and the economy has just taken a massive downturn; you as the president have two options, stimulate growth by helping the poor or by helping the rich. These two concepts are in direct opposition. Conservatives believe that the economy will recover by stimulating the rich (supply-side economics). Conversely, liberals largely believe stimulating the poor (Keynesian economics) is the best solution. Paul Krugman is an avid follower of the latter. In “Debt is Good” by Paul Krugman, the author believes, contrary to popular belief, that debt is generally a good thing. Borrowing money in a time of economic downturn is the best time to borrow money. This is because “the federal government can borrow at historically low interest rates” (Krugman, 2015). The debt that is procured can then be used …show more content…
Krugman general finds himself at odds with most conservative politicians on economic policy. This is because most conservatives take money from donors to fund their campaign. In “Trump Is Right on Economics,” Krugman goes as far to say “nobody could make a serious play for the G.O.P. nomination without pledging allegiance to supply-side doctrine” (Krugman, 2015). This is a true insult because it suggests that all conservatives are mindless sheep who follow whatever the money says to follow. Krugman, however, credits Donald trump for being self-financing and not following the failing conservative economic approach. In that same article Krugman proceeds to attack the naysayers of the liberal approach to economics. Krugman states the unemployment rate had went from “7.8 percent when Mr. Obama took office… to 5.1 percent” in September of 2015 (Krugman, 2015). This information suggest that Krugman agrees with the job that the president has been doing in relation to the economy, moreover, suggests Krugman is a