The Third Depression

First about the author, Paul Krugman...

Paul Robin Krugman, born February 28, 1953, is an American economist, columnist and author. He is Professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University, Centenary Professor at the London School of Economics, and an op-ed columnist for The New York Times. In 2008, Krugman won the Nobel Memorial Prize in Economics for his contributions to New Trade Theory and New Economic Geography. He was voted sixth in a 2005 global poll of the world's top 100 intellectuals by Prospect.

The Third Depression

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.

So Krugman believes we are in a depression... WELL DUH KRUGMAN.

But eh, Krugman is the tard who praised Gordon Brown for his bailouts... he's a Keynesian nut. He wants us to spend ourselves into oblivion.

[edit on 28-6-2010 by Vitchilo]

reply to post by Vitchilo


At least some people "of influence" are starting to say it.

Edit to add:

Line 2, oopsie.

[edit on 28/6/1010 by jokei]

reply to post by Vitchilo


He is not the only one that wants to spend us into oblivion, obviously our own government has been doing the same and it seems unstoppable after all the debt can always be pass on to the tax payer.