I found the article "Why Keynesian Chorus is Cackling like Chicken Little" extremely challenging to read. It took me a while to read this article and I had to refer to a dictionary every couple sentences because of the large economic vocabulary that I was not familiar with. The difficulty of this article would be a three on the three point scale described on the home economics page.
I believe Stockman's thesis in this article is that the federal government is printing way too much money and pumping most of that printed money into Wall Street big firms which results in the creation of a large financial bubble. According to Stockman, the federal government should just tighten the money on Wall Street. However, a lot of other economists disagree and argue that the market is already tightening America's economy based on the "financial conditions" that is measured by the Goldman Sach's Index. The Goldman Sach's index is flawed because the data tables and graphs are eschewed to their benefit. The federal government expect the money to trickle down to the average Joe when they lend the printed money to Wall Street firms. Low interest rates were expected to help the market but it had a marginal effect because 90% of households are unable to borrow despite these low interest rates.
All in all, I have a lot of questions concerning this article. What exactly is a financial bubble? How is the author proposing to fix the issue of the bubble popping soon? What is Keynesian's Economics exact effect on our country's market and how does it affect the average citizen opposed to the C-class of corporate America>
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