Editorial Economic Critique
This assignment is designed to build student’s ability to address an opposing argument with supporting evidence. This assignment is not about right or wrong, but about the ability to make a logical argument as a business leader.
Select a current editorial (column or opinion) on finance (or economics) from newspapers or magazines for your critical reading. The review should include the author of the editorial, the title of the editorial, article date, media name, summary and your argument (opinion) of the article. You must disagree to the author’s argument, not the issue the author delivers.
It is easy to agree to any article because evidence supporting the article has been already provided by the author, but it is hard to disagree unless you have evidence to support your argument. In this critical reading, you must DISAGREE to the author’s argument with evidence. The argument must be based on economic/financial principle and/or public information. Biblical principle can be applied and discussed if applicable.
Students must read an editorial not a report. Reading a news report or non-editorial article will result in zero credit.
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Editorial Economic Critique
Selected Editorial Overview
Title: “Raising Interest Rates Will Fix Inflation”
Author: John W. Mitchell
Published In: The Wall Street Journal
Date: April 18, 2025
In the editorial, Mitchell argues that persistent inflation can only be resolved through continued interest rate hikes by the Federal Reserve. He suggests that without aggressive monetary tightening, inflation will spiral out of control and erode purchasing power.
Summary of the Argument
Mitchell states that high interest rates reduce consumer demand and cool down the economy, which leads to lower inflation. He believes that past hesitations by the Fed caused inflation to spike and advocates for a strict, long-term rate increase strategy. His position is rooted in classical monetary policy principles and historical parallels such as the 1980s Volcker era.
Counter-Argument Using Economic Principles
While raising interest rates can help curb inflation, prolonged tightening can trigger recessionary effects. According to Keynesian theory, suppressing demand during fragile recoveries can increase unemployment and harm investment. Recent data shows supply-side factors like energy shocks and global trade disruptions are also fueling inflation—issues interest rates can’t resolve. A mixed policy response, including supply chain investment and targeted fiscal relief, may be more effective.
