I wish I understood economics. I once had dinner (about 25 years ago) with an economist who taught at Indiana University. I told him I wished I understood the big picture of economics. He smiled magnanimously and said, "Ask me anything." So I asked him something, though I can't remember the specifics. I guess my question was so inane--or so remedial--that he just shook his head in pity.
That was the end of the lesson. Just this morning, I read that Obama wants the Europeans to spend their way out of the recession, while the Europeans are instituting severe cuts in spending.
In my own household, I guess I've always been European. But then, I don't understand which is better on the macroeconomic level.
It also occurs to me that European countries have social safety nets so that huge cuts would not threaten life and limb as they might in the U.S.
But then, I don't understand all this. At the dinner, we had wonderful lemon ice cream for dessert. It was made by Breyers, and was discontinued shortly after I had it.
Can you make any sense of the big economic picture?
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3 comments:
The worry is deflation-see http://web.mit.edu/krugman/www/deflator.html
The spending President Obama advocates is not personal, it is public works etc.
On that note, hello from the city hosting the G20 summit. If I see the President I will ask him.
@Duchesses--OKAY. then I agree with the Prez. I guess you didn't get to talk to him...
I would like to also add that it's all fine and dandy to ask them to spend, but they may not have the money.
France for example, has a fabulous social services network -- they provide free (GOOD) food to the homeless, have a great healthcare plan, plus they have some of the most beautifully kept buildings & roads.
Guess what? They're in the red. They have no idea whether they'll be able to cover their VERY generous retirement plan, or keep going the way they're going with Baby Boomers starting to retire and less babies being born in the younger cohorts.
What I heard from BF's side, is that they are all buckling down on spending. Everyone is trying to save.
They just simply may not have the money. They could have more than the States, but it's like comparing a hurricane to a tornado -- they're both out of control.
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