Here is the thing that the kids should know: Economists thought so much of Paul Krugman that they gave him a Nobel Prize; me they ignore as much as possible. There may be something to say about the quality of work involved, though I dislike that Thought. This latest Point from Krugman still bothers me; I thinking that Stimulus should be more than Make-Work. I could delve into some economic aspects, and ask if Recession does not reflect the overuse of resources to some degree. Stimulus, under those conditions, will cancel the recovery aspects for resource use; especially if there is no secondary benefit from the use–like Make-Work. The Krugman thesis would negate current developing theories on resource overuse. This second generation of Thought would find Stimulus much less beneficial as first devised, and propel the Thought that Stimulus maintains a skew in resource pricing, specifically inciting inflationary Pricing; causing some down-the-Road excessive Production Costs for necessary enterprise. It is my creation of this idea which leads no one to want to talk with me!
I should first of all state that I am stealing all this material from links provided by Mark Thoma; a common occurrence for myself, if not for my Peers. This Post contends that the worst element would be if Wages fell against rising Prices. I could agree with that datum, but would insist that Prices are the element which must lower; nothing could be achieved by a Wage increase which would pressure a Price increase because of higher Production Costs. This later bugaboo is the real culprit, and the reason that health care should be separated from Employers. This style of Employer-sponsored health care always dictates that the highest quality care insurance must be provided to guarantee the productive support of Labor. Employer-sponsored health insurance, though, will never be eliminated as long as there is no Public Option. Labor must be assured of some type of medical protection, and the majority of Business should separate from the health care industry for their own benefit. It is difficult for me to understand Why such Business organizations do not!
I do not relatively believe the context of this data, as I do not believe there has been any marked degree of reduction in current Consumption. I do believe that Consumers are maxed out, and any Inflation in Pricing will lead to a reduction in Consumption. A declining Dollar inevitably will entail some degree of Inflation, and Consumption will decrease. Many economists like the weakening Dollar, saying that it will lead to increasing levels of Exports combined with declining levels of Imports. I hate to inform that the decline in American Consumption will always be more rapid than rise in amounts of Exports, and We will face a reducing Employment level. I cannot back the poetic rapture of the value of a declining American standard of living. lgl