"Revenge of the Glut," an artical that appeared in the New York Times, was written by Paul Krugman. The article is about the economic crisis that is happening all over the world. Krugman wanted to voice his opinion to the people. His opinion is somewhat based on the speech given by
Ben Bernanke, the Federal Reserve chairman. Krugman's beleives that the crisis was caused by countries saving their money, instead of investing it. Because the countries and business within those countries did not invest it lead to other countries not making money on their exports. Krugman also says that we are doing the same thing now, which is saving instead of investing, but we are doing it more.
Krugman's article and point of view makes sense to me. I can totally see why saving instead of spending would cause a world-wide economic crisis. Before I read this article, I really did not understand what caused the world-wide finacial fall. But, now I understand it a little better. I also understand why business and countries want to save now instead of spend. But, then if they do invest or spend money on different things then they would be left pennyless. So what should they do?
