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The Third Depression

Discussion in 'Political Discussion' started by Real World, Jun 28, 2010.

  1. Real World

    Real World Moderator Staff Member

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    IIRC, Krugman is one of those people that believes deficits don't matter.


    Op-Ed Columnist

    The Third Depression

    By PAUL KRUGMAN
    Published: June 27, 2010


    Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.


    Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.

    We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.

    And this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting — governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.

    In 2008 and 2009, it seemed as if we might have learned from history. Unlike their predecessors, who raised interest rates in the face of financial crisis, the current leaders of the Federal Reserve and the European Central Bank slashed rates and moved to support credit markets. Unlike governments of the past, which tried to balance budgets in the face of a plunging economy, today’s governments allowed deficits to rise. And better policies helped the world avoid complete collapse: the recession brought on by the financial crisis arguably ended last summer.



    Op-Ed Columnist - The Third Depression - NYTimes.com
     
  2. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Even Krugman realizes the jig is up, meanwhile the dems aren't going to work on the budget until AFTER the elections. They don't wnat the size of the defictibeing on voters minds come election time.


    Same with the VAT they will try to pass and cap and trade.
     
  3. Wolfpack

    Wolfpack Banned

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    Well we certainly seem to be headed in the general direction of a 3rd Depression, thanks to the economic policies of the Obama Adminstration. But hey, who cares if we stick our children and grandchildren with trillions and trillions of dollars of debt? Screw the little turds!
     
  4. JackBauer

    JackBauer Pro Bowl Player

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    We were already in the 3rd Depression when Obama took office.
     
  5. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    No we were in a recession. Do try to keep up.
     
  6. TBradyOwnsYou

    TBradyOwnsYou 2nd Team Getting Their First Start

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    But Obama is trying to spend and borrow our way out of it
     
  7. JackBauer

    JackBauer Pro Bowl Player

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    Do you understand how recessions/depressions usually work?
     
  8. Wolfpack

    Wolfpack Banned

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    It's obvious he has a much better understanding of it than you do.
     
  9. JackBauer

    JackBauer Pro Bowl Player

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    Well, since he has your endorsement, he's almost guaranteed to be wrong. It's like the Madden curse of the Political Discussion forum.
     
    Last edited: Jun 28, 2010
  10. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    We're in this mess due to a credit boom that drove every facet of our economy. To believe that we can use borrowed money to get out of a spending binge is idiotic....nothing more, nothing less.

    That's like saying an alcoholic can drink his way out of a drinking binge.
     
  11. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    Obama and this Congress are destroying America, we will suffer because of them but they will be stopped, AT THE POLLS.
     
  12. Ilikehappyppl

    Ilikehappyppl 2nd Team Getting Their First Start

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    Yep and you and everyone else will vote in a new set of idiots that will make it even worse.

    Its not sunshine and rainbows out there Harry;)

    There is no one worth voting for......they are all cut from the same cloth.
     
  13. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    Have to keep replacing them, term limits.

    The time spent on the job by Robert Byrd & Uncle Teddy was disgusting and you are right politicians are the lowest form of scum on the face of the earth.
     

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