| mrstickball said: Yet again, another horrible Krugman piece. |
Alright think of it like this. We had a steady unemployment rate for the past years. Now we have unusually high unemployment. Our GDP/output is also unusually low.
To simply dismiss the 10% unemployment as usual laziness/lack of incentive is absolutely stupid. Is it laziness, or is it the recession?
I won't go into moral mode, and start asking what's going to happen to the 10% who are going to lose their benefits.
But what else do you have against, aside from the political opinions? It is true that the richer you are, the less you save, and more you spend. Economically that means you have a high marginal propensity to consume (MPC) and the multiplier effect is greater. In other words, giving money to the masses of unemployed is much better than giving money to a few bridge/road makers.
