The article entitled, Revenge of the Glut, was written by Paul Krugman. He began writing for the New York Times in 1990. He taught at school such as Yale, MIT, and Stanford. Along with receiving his degrees from Yale and MIT. This article was published on March 1st, 2009, in the New York Times, in the Opinion sections of the paper.
This article was written to inform people of how the economy works. The audience is directed to those who do not know much about how economics works. The basic argument of the author is that every economy goes up and down. They just have to adapt.
In this article the author says that this was the revenge of glut. That America got a lot of extra money form other countries from capital inflows. It is just natural that since most countries stopped exporting things that it would hurt us. We as a nation just need to tough it out. It will last at least another year, but I feel that if Asia got through it in 1997-1998 then we can do it. The money has just spread out to too many other countries we need to find a way to get it back to our country. It has happened to every country that has a big boom, you just loose the edge some how some way. When you have a lot of money coming in you have to re-budget to keep things running smoothly. Then when you loose money, you have to re-budget yet again to keep things running smoothly. It was a very well written article, and I found it very interesting to read.
