Americans Are Misinformed When It Comes To The Economy

The link takes you to an article declaring the misinformation that is rife in America today. Most of our citizens carry inaccurate opinions on the status of the Economy and the government's finances. This is disheartening since they are about to make some pretty important decisions.

1. What does the reader believe to be the single biggest reason for this level of misinformation in our society today? Explain.

2. Why might it be easy to understand that, faced with the facts, individual households could still be skeptical about the macro realities?

3. If these represent the opinions Americans are taking to the polls, what impact will this have on Tuesday's election and the coming years in our national and state Capitols?

4. Can you make a connection, as students, between the disintegration of objective media, the rise of polarizing and uncivil relations in our politics, the disappearance of well-guided public education, and this level of misdirection among the electorate?

Every Graph You'll Ever Need

Disparity Of Wages Worldwide

Click the image to enlarge

Source: FixR

IOUSA

This is a video from the Peterson Foundation, currently led by former Comptroller David Walker. It puts the messy fiscal scene in perspective.

Roosevelt Recession Reprise?

In 1937, thinking the economy was back on its feet, the Roosevelt administration began a return to austerity after the "extravagant" spending of the New Deal. The result was a double dip with unemployment levels returning to 17% and the GDP contracting. The mood in Washington now is to reign in deficits and roll back the stimulus. The author of this article believes it to be premature and that it will stir the ghosts of 1937.

"A Pernicious Disconnect"

Balancing The American Economy (video)

PBS American Experience/Crash Of 1929 (video)

Click on the title above and you can access an online version of the great documentary of the Crash.

Paul Krugman on "crowding out".

A must read for AP Macro teachers: Paul Krugman explains why deficit spending during a recession does NOT cause crowding-out

A.P. Economics vs. Real Life

Click on the title above to access a quiz of fundamental macro principles. The blog comment raises the concern that Econ 101 fundamentals and the recent behavior of our monetary authorities have not coincided well.