In a week where change was the word on everyone’s lips, not a lot changed in the economic data. Jobless claims are still rising, housing is still in the dumps and the big financial insitutions are still struggling. With the economic dreariness as a backdrop, the stock market fell again, although only about 2%. Earnings [...]

In order to cure what ails, one must first diagnose the problem. What we have today is an economy rife with fear and stricken with debt. Fear of losing one’s job, fear of being unable to pay one’s obligations. Fear of expanding, fear of hiring, fear of producing, fear of change. Fear dominates our economic landscape, [...]

The very foundation of Keynesianism is based on a fallacy - the Paradox of Thrift. Paul Krugman explained this alleged paradox in one of his New York Times editorials:
Some background: one of the high points of the semester, if you’re a teacher of introductory macroeconomics, comes when you explain how individual virtue can be public [...]