Introduction

How did economist get everything so wrong? This question is a great question to ask and if you ask the author of the article that was published on the New York Times in September 2, 2009, Mr. Paul Krugman. His response would be that is the economist own fault and problem to why in 2008 the economy fail and we went on a recession. The reason to why he says that it is the economist own fault to why we went on recession was that the economist thought that they had figured out the perfect economy policy due to their research and mathematical formulas that made them think that they had solved the mystery of a perfect non recession economy. So what I mean is that in a way they thought there research and thoughts were bullet proof of recessions and even worse another great depression. Furthermore, in this article Paul goes into deep detail to why economists are the way they are and also if they would ever change their beliefs in the future. However Paul does mention in this article that there are very few economist that did predict that a recession would happen in the future, but due to the fact of hoe cocky economist were with their formula an research that they actually laughed at the these few economist, but at it is said whoever laughs last laughs better.
Article Background

In this article Paul gives a total description of how we reached our recession in 2008 and he starts giving out details from the history of economy and how the first great depression happened in the 1930’s. Paul explains that since the term economy was created economists have always tried to keep a stable economy throughout history, by creating different policies such as the monetary policy and the fiscal policy to keep an economy afloat. However he also explains that economist have also used disciplines that other economist have written in order to keep the economy running. These disciplines have been reports that economist such as Adam Smith and John Keynes have created. These repost have had a great impact on how economist do their jobs today. For example in 1776 Adam wrote the wealth of nations where it stated that economist should trust the market and this was something that economist would follow this approach for 160 years which is a very long time. So economist did follow this approach knowing that it wasn’t completely true, but they still followed it until the economist were hit with their biggest goliath ever which was the first great depression and even then they said to trust the market. So as the Great Depression was happening an economist by the name of John Maynard Keynes wrote his repost called The General Theory of Employment, Interest, and Money in which his theory explained that in order to have a solid economy these three things were needed to be present in order to have a strong economy. As of today you economist who agree with this theory who are called the Keynesian’s and you also have the anit-Keynesian’s who believed that this theory was great but it was not the theory that would prevent future recessions. Now this theory became true for a lot of years and economist became very trustworthy on the numbers, the formulas, the analysis, and the years oh no recessions that when another economist would say that something was coming none believed them. So this is one of the biggest reasons to why we had our 2008 recession which went from bad to really bad because they could not go below zero on interest in order to give the economy a boost so this was what made things worse because they could go below zero interest. So in my opinion what this shows is that there are still a lot of flaws in the way economy is administered and that something better need to be followed.
Conclusion

In Conclusion as of today the best theory to follow is the Keynes theory because economists have not come out with a better approach that Keynes’s. Based on Paul Krugman and his article he believes that in the future after the depression happened in 2008 economist will keep following the theory because it is hard to perfect a way to be perfect of having a un-recession, un-depression economy. So if there will ever be a solution is hard to predict, but as Paul says there is always a way to fix a problem and the solution to that problem is very easy, but the reason to why the problem is not solved is because a lot of assumptions are made that prevents the solution from happening.