

Corporate Cash Con - bakbak
http://www.nytimes.com/2011/07/04/opinion/04krugman.html?_r=1&src=ISMR_HP_LO_MST_FB

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pwg
Non-paywalled link:
[http://economistsview.typepad.com/economistsview/2011/07/pau...](http://economistsview.typepad.com/economistsview/2011/07/paul-
krugman-corporate-cash-con.html)

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1010011010
Contrary viewpoint: [http://krugman-in-
wonderland.blogspot.com/2011/07/krugmans-k...](http://krugman-in-
wonderland.blogspot.com/2011/07/krugmans-keynesian-cash-con.html)

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mrj
Krugman's main point is that giving more money to rich people isn't
necessarily going to stimulate growth because they are already sitting on lots
of money. Your link there goes off on a tangent about government spending and
taxes instead of directly addressing the main point: trickle down isn't going
to work when the corporations aren't investing, anyhow.

To his point: corporations need certainty to spend, sure. Few doubt that. But
so does the consumer. The save-the-poor-rich-guy crowd forgets that the
consumer is the major driver of economic activity. If all you talk about is
how the government is broke and we're going to have to dismantle entitlements
and cut spending and your kid's school can't afford half the teachers and so
on, people are going to save all they can against an uncertain future. Indeed,
savings rates have been on the rise.

We are never going to get the economy going again by removing government
spending to the least fortunate and giving more money to the rich who're
hoarding already. That will cause even less liquidity and deflation by
removing money from active circulation. It'll be a disaster.

The rich should be more mindful that a healthy economy benefits them, too.

