The Biggest Bill in History and The Lessons of 193 Essay

Published: 2020-04-22 15:25:56
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Two articles on the current economic crisis”Pubic Debt: The Biggest Bill in History (The Economist, June 11, 2009) and The Lessons of 1937 (The Economist, June 18, 2009) both list down various points and issues that liken todays financial crisis to that of the Great Depression of the 1930s. Upon introduction, Romer writes that policymakers must learn from the errors that prolonged the Depression (par. 1), while Ryder contrasts between the right and wrong ways to deal with the rich worlds fiscal mess (par.

1). The Lessons of 1937 In a guest article, Presidential Economic Adviser Christina Romer describes the barriers that economic recovery had to hurdle in the late 1930s. She credits this downturn to the unfortunate, and largely inadvertent, switch to contractionary fiscal and monetary policy (Romer, par. 3). Romer stresses the importance of looking at the events of the 1937 Depression and learning from its mistakes.

There is a strong urge today to declare victory and the return of fiscal stability at the slightest sign of economic improvement”Romer believes that todays lawmakers should strongly avoid doing so until the employment rate closely approaches its highest degree. The lessons of the 1930s should inspire us to find constructive ways to respond to the natural pressure to cut back on stimulus (Romer, par. 7). Public Debt: The Biggest Bill in History

Brett Ryders opinion piece describes massive public debt as another potential cloud¦on the financial horizon (par. 1). As tax revenues are reduces and more money reserves are spent on bailouts, unemployment benefits and stimulus plans, international governments continue to borrow massive amounts of money. Ryder also writes that whatever damage this borrowing is doing, it is a necessary antidote to the current economic decline (par. 3).

Governments should hold off on fiscal tightening until economies are much stronger.

Works Cited Romer, Christina. The Lessons of 1937. Economist. com. 18 June 2009. 22 June 2009. . Ryder, Brett. Public Debt: The Biggest Bill in History. Economist. com. 11 June 2009. 22 June 2009. . The (Macro)Economic Crisis:

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