An economist professor graduate from world’s most renowned universities and a Nobel Prize winner, Paul Krugman, is amongst the most revered economists in the world. He is a strong believer of socialism. Many critics have judged his rationale as regards economic matters and his ideologies has being false. This professor from Princeton has been wrong several times in predicting the economic facts (Lendman, 2013). In this context, he is seen to suggest that the government should continue spending thus pushing the economic recovery. A further step is implementation of measures when the economy begins to experience a rise in the inflation rates. This ideology is simply preposterous as it results to the increase in pressure placed on a recovering economy.
There are several points that are contradictory
to the ideologies on how the economic growth should be steered. One of the
proposed methods that contradict with the rationale forwarded by professor is that
the government should shift from origin-based taxes to location–based taxes
that by the retailers (Mortimer, 2013). This method ensures that they only
collect tax based on the location of origin
of the goods, considering that the small businesses account for 96% of the
states 235,230 firms, this move would indeed the best solution for relieving
the pressure on a recovering market. Inflation should be an unavoidable
circumstance that the state is unfortunate to find itself in, however, according
to Krugman, more pressure that is applied to n economy is aimed at fueling the
results of inflation. When inflation is attained then necessary measures are
taken to curb the overall effects of inflation (Butowsky, 2013). In a
recovering economy, inflation is seen as a throw back as it results to the
price hikes in products thus decreasing the consumer demand and the resultant
supply. In this predicament, all measures should be focused on reducing strain
on the economy rather than increasing it.
Lendman, S. (2013, 01February). The US Economy in Crisis: Recovery is an illusion. Global Research, 145, 23-31.
Butowsky, E. (2013, 31 July). Recipe for and Economic Recovery: Complete Makeover. Fox business, 167, 14-16.
Mortimer, B.Z. (2013 16 July). The wages of a phony Recovery.US.NEWS, 234, 11-12.