Paul Krugman in his last three columns has been trying to effectively distance the European Debt crisis from the American shores. (We're Not Greece, A Money Too Far, The Euro-Trap)This is the same Nobel Laureate Paul Krugman who was widely recognized for his criticism of the Bush administration and its free-spending and reckless approach that would bring the US economy to an Argentinian end. (Our Banana Republics, Passing it Along, (2003)). Krugman's apparent memory loss or argument reversal, takes place at a time that accountability, populism and political expediency proliferate. From the populist pronouncement of new British Prime Minister David Cameron announcing a pay cut and a pay freeze for his ministers to the lack of accountability of the great disaster of the Gulf Oil spill not by BP but by American citizens who still are not willing to make drilling corporations accountable because it might cost them as consumers at the pump.
I agree that Krugman has not remained consistent in his perspective on the American economy and its fragility. In another recent article, Krugman pointed towards poor governance as a major influence in causing and mismanaging the current Gulf oil spill. He claims that "we need politicians who believe in good government, because there are some jobs only the government can do". ("Sex & Drugs & the Spill", NYT 5/9/2010) While this may be true, the problem must be addressed far before the moment crisis hits. I think that the broad financing of off-shore oil drilling as a means to utilize our resources is only prolonging an issue that has been plaguing the United States and many other developed states in recent years. Money should not be used to fuel oil dependence as much as it should be used to broaden resource options. This will be reinforced by government support behind new energy endeavors. The blame may very well be placed on American citizens who continue to support the oil companies with every gallon purchased. However, there must be a perspective shift at the system level much like that which is being established by David Cameron in his instruction to the new coalition government to tackle a large economic issue.
ReplyDeleteThe economic crisis has poignantly shown just how tightly interconnected the global market is. The faltering U.S. economy affected the world markets, and vice versa, the EU financial crisis has brought repercussions for the fragile recovery of the American economy.
ReplyDeleteSo whether Krugman praises or reproaches Europe for its economic policies, one thing is clear. In this time of economic trouble the words of Thomas Friedman ring with a bitter sound -- the world indeed is flat. Economic growth and crisis alike spill over the washed-out boarders with unavoidable fluidity. We are interdependent, we ARE Greece.
Though the state and structure of the economy vary from country to country and cannot be addressed in one sweeping way even if the international community had such tools, it is time for collective accountability, not the blame game and finger-pointing. Collective responsibility and action to address collective issues (including the global economic crisis, the BP oil spill, or the worsening Israeli-Palestinian conflict) should no longer be avoided. You can't just patch torn, worn-out pants in just one spot and expect to hand them down for generations.