Saturday, June 28, 2014
Why Its A Good Idea To Fight Climate Change In A Depressed Economy
Paul Krugman explains why conservative pundits have the economics all wrong about the timing of government investments that will reduce carbon emissions. They argue that we can't afford the investment in a slow growth economy. The worst time to increase government spending is when we have a full-employment economy. That would lead to price inflation. We currently have a shortfall in demand, and an oversupply of capacity and labor. Government can also borrow at very low interest rates. We can reduce carbon emissions and create jobs by fighting climate change now.