Paul Krugman, op-ed columnist at The New York Times and Nobel Prize winner, explained at the ANA annual conference that consumers' efforts to save money are actually hurting the economy. "The basic problem we have now is that the economy is depressed because people don't want to spend," he said. And the problem can't be solved in the usual way, that is, "by having the Fed cut interest rates." Instead, the U.S. government could buck the saving trend by running deficits, spending, he said, "so as to push up the economy's performance."
||VIDEOGRAPHY: STEVE RADDOCK
|ANA 2010: Paul Krugman|