Paul Krugman, Obama Administration Policy And "The Third Depression"
Yesterday I had posed the question in the article "The economy and rioting in the streets", of whether the economic unrest of Europe that includes strikes and rioting in the streets could spread to the United States, and whether a double-dip recession, housing double-dip or even worse could pose a threat to our national security.
What Are The Chances Of A Third Depression? Let's Ask Paul Krugman, Nobel Prize Winner in Economics
Paul Krugman, 2008 Nobel Prize winning economist and frequent commentator in the blog that bears his name, as well as in Op-eds appearing in the New York Times thinks a real chance exists. He believes it will resemble more of the Long Depression of the 1800's than the Great Depression of the early 1900's, but that the global pain and suffering will be equally as bad in terms of loss of employment and the accompanying despair. In "The Third Depression", this is made clear in simple terms, or as simple as a Nobel winning economist can make it. I would recommend this as a must read, and leave you with the final paragraphs:
"...So I don’t think this is really about Greece, or indeed about any realistic appreciation of the tradeoffs between deficits and jobs. It is, instead, the victory of an orthodoxy that has little to do with rational analysis, whose main tenet is that imposing suffering on other people is how you show leadership in tough times.
And who will pay the price for this triumph of orthodoxy? The answer is, tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again."
Photo courtesy of tycoonresearch.com
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