Gist: Federal reserve chairman Ben S. Bernanke said that the federal reserve is ready to do whatever it takes to help the economy but now the recovery is in consumers and businesses hands. Robert Frank an economics professor from Cornel university think it's the government who need to spend the money.
Mark Thomas an economics professor at the university of Oregon explains: People and businesses need to spend money, start new businesses and expand which will start bringing employment back and start bringing confidence back. This is a circular argument - we need to spend money to improve the economy so we feel more confident and spend more money .
Robert Frank thinks the government needs to spend the money. He suggests a national project like repairing the interstate highways. Thousands of new jobs and new businesses will be created to support a project like this and it will be enough to start the recovery.
No comments:
Post a Comment