The Third Depression
In my humble opinion, Paul Krugman nails it in his New York Times column yesterday today. We’re in for some tough economic times, and those who proclaim that we are seeing the “green shoots” of recovery in the U.S. economy are sadly mistaken.
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The Third Depression
by Paul Krugman
New York Times, June 27, 2010Recessions 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.
Click here to read the entire column
For another view of our nation’s economy, see “Say What?” by James Howard Kuntsler.
Monday, June 28th, 20101 Comment »
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You’ve certainly got that one right, my friend.
Comment by Timothy Amburegy — June 28, 2010 @ 12:09 pm