Top Economists Say It’s a Depression
Paul Krugman released a new book yesterday called “End This Depression Now“. In the introduction, Krugman writes:
The best way to think about this continued slump, I’d argue, is to accept that we’re in a depression …. It’s nonetheless essentially the same kind of situation that John Maynard Keynes described in the 1930s: “a chronic condition of subnormal activity for a considerable period without any marked tendency either towards recovery or towards complete collapse.”
Robert Shiller said yesterday that the world is in a state of “late Great Depression”.
Many other top economists also say that were in a Depression.
We are stuck in a depression because the government has done all of the wrong things, and has failed to address the core problems.
- An economics professor says we’ll have “a never-ending depression unless we repudiate the debt, which never should have been extended in the first place”
- Fraud was one of the main causes of the Depression, but nothing has been done to rein in fraud today. Indeed, the only action the government is taking is to help cover up fraud
- All leading independent economists have said that the economy cannot recover until the big, insolvent banks are broken up, but the government has just helped them to get bigger
- Excessive leverage helped cause the Great Depression and the current crisis, but the government has encouraged more leverage
- The Federal Reserve caused the Great Depression and the current crisis, and has done nothing but help the fatcats at the expense of the little guy. And yet the government has given the Fed more power than ever.
- Government policies send manufacturing jobs and dollars abroad
This isn’t an issue of left versus right … it’s corruption and bad policies which help the top .1% but are causing a depression for the vast majority of the American people.