Monday, June 28, 2010
Yikes! And, yikes!Krugman thinks it's a Depression (The Third Depression New York Times 06/27/2010):
As far as rhetoric is concerned, the revival of the old-time religion is most evident in Europe, where officials seem to be getting their talking points from the collected speeches of Herbert Hoover, up to and including the claim that raising taxes and cutting spending will actually expand the economy, by improving business confidence. As a practical matter, however, America isn’t doing much better. The Fed seems aware of the deflationary risks — but what it proposes to do about these risks is, well, nothing. The Obama administration understands the dangers of premature fiscal austerity — but because Republicans and conservative Democrats in Congress won’t authorize additional aid to state governments, that austerity is coming anyway, in the form of budget cuts at the state and local levels.This is a factor that sociologists, historians, political scientists and economists often underplay in their analyses of events: sometimes people just do dumb things because they're in the grips of some ideology or some spectacular misconception.
Tags: us economy
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No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."
-- Cecil Day-Lewis from Where Are The War Poets?
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