Paul Krugman Throws In Towel, Says We're Headed For Another Depression
For the last several months, Princeton professor Paul Krugman has become increasingly agitated about what he feels is a disastrous mistake in the making
-- a sudden global obsession with "austerity" that will lead to spending cuts in many nations in Europe and, possibly, the United States.
Krugman believes that this is exactly the same mistake we made in 1937, when the country was beginning to emerge from the Great Depression.
A sudden focus on austerity in 1937, it is widely believed, halted four years of strong growth and plunged the country back into recession,
sending the unemployment rate soaring again.
In Krugman's view, the world should keep spending now, to offset the pain of the recession and high unemployment--and then start cutting back
as soon as the economy is robustly healthy again. Those concerned about the world's massive debt and deficits, however, have seized control
of the public debate, and are scaring the world's governments into cutting back.
Which fate is worse? It depends on your time frame.
For moar readings......http://finance.yahoo.com/tech-ticke...owel,-Says-Were-Headed-For-Another-Depression
:o :( :o
For the last several months, Princeton professor Paul Krugman has become increasingly agitated about what he feels is a disastrous mistake in the making
-- a sudden global obsession with "austerity" that will lead to spending cuts in many nations in Europe and, possibly, the United States.
Krugman believes that this is exactly the same mistake we made in 1937, when the country was beginning to emerge from the Great Depression.
A sudden focus on austerity in 1937, it is widely believed, halted four years of strong growth and plunged the country back into recession,
sending the unemployment rate soaring again.
In Krugman's view, the world should keep spending now, to offset the pain of the recession and high unemployment--and then start cutting back
as soon as the economy is robustly healthy again. Those concerned about the world's massive debt and deficits, however, have seized control
of the public debate, and are scaring the world's governments into cutting back.
Which fate is worse? It depends on your time frame.
For moar readings......http://finance.yahoo.com/tech-ticke...owel,-Says-Were-Headed-For-Another-Depression
:o :( :o
