The Economist recently published an article regarding the rising debt of the United States. It is currently anticipated that the national debt will double in nominal value in the next 10 years. However, many economists (Krugman and DeLong)are pushing for additional stimulus packages to try and spur a recovery and prevent a continued downturn.However, the political atmosphere is not very supportive of additional stimulus. Several members of Congress have denounced the effectiveness of the current stimulus. The New York Times recently quantified the amount of interest payments that the U.S. will be expected to pay in the coming years. The White House is even now less optimistic about any future stimulus according to a report by the Wall Street Journal.
The economy has now contracted severely, and the recent 3rd quarter GDP growth rate of 3.8% was revised down to 2.8%. Intrade, a site that allows for trading on all sorts of events, has published lower recession probability numbers in 2010, with the bets ranging around 25%, meaning that the probability output will contract at least two consecutive quarters in 2010 is currently put at 25%.
Questions you might try to answer:
- Do you believe that the country needs more stimulus or less? What would be the result of either adding to the deficit or reducing it?
- Do you think that additional tax cuts, government spending, or central bank action will result in an economic recovery, or do you believe the economy will stagnate even if action is taken.
First off. When writing your blogs, do NOT simply restate or summarize one of the articles that I give you to look over. You are supposed to be forming an opinion, and trying to defend your opinion using facts that you obtain from an article. If someone else has already used your statistic, you should NOT just use it again. You’re supposed to be finding information here in related articles.
I would like your statements to be as subjective as possible, or in jargon terms, positive and not normative in nature. Also, remember, I want you to keep your descriptions short, basic, and related to classroom content. Read other students comments before posting, and please leave your name with your posting.