For millennia, a country’s level of prosper was defined by the state of the economy. The country’s consumption, production level and its money supply are the key factors that determine whether or not the economy is healthy. Historically, a healthy economy was following by increasing country ou tputs, consumers’ willingness to spend, thus increasing producers’ investment and decreasing unemployment rate. The US’s economy has experiences several depressions in the history; the most recent depression happened during 2008, when the housing and financial market crashed in the US. During the depression, a lot of economists seem had their own opinions or theories about how to help the US out of the depression. In this book review, the major debate and issues represented in Paul Krugman's (2013) book “End This Depression Now” will be discussed. There are some analyses of key ideas of different scientists reflected in the book. Much attention is also devoted to the review of the US economic history and disagreement from some economists for the principles of Keynesian theory.
Policy, Ideas and Measures
The book "End This Depression Now" (Krugman, 2013) insists that contemporary economic challenges should be viewed from the position of practical ability rather than from analytical polemics. It argues that contemporary policy makers and economists must think of what should be done today which will lead to a consequences tomorrow. The author disputes that we should not think so hard of what has caused the current state of the economy, but what we should do to cure it from the ills of the previous hits.
Krugman(2013) is using this book as the warning to the public and state officials to understand the reality of contemporary economic challenges and stop the austerity. In his book, he introduces a set of ideas and simulation expansions that the U.S.’s government should implement in order to save the U.S. economy from depression. The book holds substantial criticism of the existing economic practices that allegedly deprive state economy of funds, which could benefit the poor state of the country’s economy. Among such economic practices, the author points out austerity measures and fiscal cuts. He believes that sufficient consumption is impossible under the high rate of unemployment. The main argument is that people must have sufficient funds to spend so that markets could thrive. Low consumption is the indicator of people’s inability to spend, which would inevitably affect markets in a negative way. Krugman (2013) argues that despite the great necessity to cut debt, austerity measures and fiscal cuts should be practiced not during the period of recovery from severe financial shocks, but when the economy is ready enough to be independent from government spending. He views this independence as the ability of the private sector to handle decreased government spending and fully employed economy. Krugman (2013) also insists that current economic hardships can...