Wednesday, March 11, 2009

Economists disagree, but who is more confident regarding Obama's policy?

See the below editorial at Washton Times:
EDITORIAL: Too rosy for even a Nobel Prize winner?
...
Harvard economics Professor Greg Mankiw thinks that Mr. Obama's growth forecasts are overly optimistic and that the federal deficit will be a lot larger than Mr. Obama thinks. He was chastised by Princeton's Paul Krugman, a Nobel Prize winner in economics, who on his New York Times blog claims that Mankiw can only make the predictions that he does because of "more than a bit of deliberate obtuseness." He titled his post on Mankiw, "Roots of Evil."
Last Wednesday, Mankiw responded to Krugman's attacks by suggesting: "Well, Paul, if you are so confident in this forecast, would you like to place a wager on it and take advantage of my wickedness?" Krugman has still not responded. It seems even a Nobel Prize winner isn't willing to lay money on Mr. Obama's rosy projections.

2 comments:

  1. i work for wells fargo servicing foreclosure accounts. i too think there is to much optimizum. there are so many people unemployed and even more underemployed either do to taking lesser paying jobs to avoid being unemployed, or receiving pay cuts to keep their jobs. just wondering what is your thoughts?

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  2. Well, thanks a lot for your attention. It is really a very hard question, and this depression is the worst in history since the great depression in 1930s. Even economists at top research institutions fight against each other towards what the government should do or should not do.

    For the goodness of the U.S. economy, even for that of the world economy, the U.S. government should bring incentive to the current market to attract inversters to start to inverst, instead of holding money somewhere else. Otherwise, we all are losing money, which can be evidenced by the increasing amount of unemployment documented by journalists.
    No matter whatever the economists might think, the U.S. government should let the inversters believe there is great chance to make profit. Untill the economy is spurred enought, we are all in bad positions and the unemployed will be underdogs. And in the near future, we may find us in the same situation.

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