Should we have let foundering financial firms fail in 2008? Economics correspondent Paul Solman sits down with economist Paul Krugman to discuss the provocative bestseller "The Great Deformation" by David Stockman and the government's role in mediating economic meltdowns.

This video is from the Making Sen$e with Paul Solman video series from PBS. Learn more about these videos and view a listing of the most recent videos we have available.

Key Concepts

Government Expenditures, Government Revenues, Fiscal Policy, Income Tax, Monetary Policy, Business Cycles, Cyclical Unemployment, Expansionary Fiscal Policy, Federal Reserve, Recession


Taxation without Representation?

This lesson will take students through the series of tax acts that were enacted by the British government and disputed by the original 13 colonies of America prior to the American Revolution. Students will discuss the concept of government-provided services in exchange for taxes. Students w...

Grades 3-5, 6-8

Fed Orders Interest Rate Cut

On October 15, 1998 Alan Greenspan and the Board of Governors, in a surprise move ordered short-term interest rates cut by 0.25%. What prompted the Fed to take this action? What impact will the rate change have on the economy? Analyze the articles below to examine the linkages between acti...

Grades 9-12

Focus on Economic Data: The Federal Reserve and Monetary Policy, January 11, 2015

This lesson utilizes the December 16-17, 2014, statement of the Federal Reserve's Federal Open Market Committee (FOMC) to explore the Federal Reserve's twin goals of price stability and full employment. This lesson discusses the role and importance of inflationary expectations for economic stabil...

Grades 9-12

Focus on Economic Data: U.S. Real GDP Growth, January 7, 2015

In this lesson, students explore the final (third) estimate of real GDP data for the third quarter of 2014. These data, released by the Bureau of Economic Analysis, are presented first as estimates, then as revisions as more data for the time period is collected. This lesson uses data from the fi...

Grades 9-12

Who Is Ben Bernanke?

This lesson introduces students to the Chairman of the Federal Reserve System, Ben Bernanke. It describes briefly his involvement within the Federal Reserve.

Grades 9-12