The article entitled, “Revenge of the Glut” was written by Paul Krugman of The New York Times. This article is directed towards the general audience and for people who are interested in knowing how the United States got itself into such an economical disaster. This article was written to inform people that our economic standing is getting considerably worse than it was in the past. Americans used to worry about the subprime crisis but nowadays as Krugman stated, “that was only a small fraction of the problem.” Today knew kinds of debt are emerging and we have gotten ourselves in such a mess that will be extremely hard to get out of.
The main argument that Krugman is trying to address is how exactly America got itself into this mess. He goes on to explain that the “rapid rise of the U.S. trade deficit in the early 21st century did not lay in the hands of America but in Asia.” As stated by Krugman, “For a while, the inrush of capital created the illusion of wealth in these countries, just as it did for American homeowners: asset prices were rising, currencies were strong, and everything looked fine. But bubbles always burst sooner or later.” As of now our bubble has definitely burst. Not only is America in a slump but other countries are as well; which makes this economic crisis, global. We are still trying to find a way out of this mess but in reality it is going to be a very long and strenuous process.
