It’s time to start calling the current situation what it is: a depression. True, it’s not a full replay of the Great Depression, but that’s cold comfort. Unemployment in both America and Europe remains disastrously high. Leaders and institutions are increasingly discredited. And democratic values are under siege.
Ya think? Paul Krugman wants to make as if this is some grand pronouncement, some startling revelation that he came up with, but he's not the first to say it. He's actually pretty late to the game. Krugman thinks it's time to call this situation what it is, but it's long past time. It was time before "the situation" even happened to call it out for what it was and what it would become.
Adherents to the school of economic thinking that Krugman likes to spend his time bashing, have not only been calling this a depression all along, they were calling it one before it even happened. They were calling it one when they were predicting years in advance that it would happen, and when it did, they continued to go against the grain by saying it was not temporary and there would be no recovery, that things were only going to get worse. You're not that profound, Paul.
Not only that, but Krugman can't even admit how bad things really are. He softens his assessment with, "True, it’s not a full replay of the Great Depression, but that’s cold comfort." Uh, yeah it's not a full replay of the Great Depression... it's the beginning of something so much worse: economic contraction that happens concurrently with soaring high inflation if we're lucky, and total monetary collapse if we're not.
It is the policies that Krugman and his school of thought have advocated which led us here and if Krugman had had his way over the last decade, we'd be in even worse shape than we are now. So thanks for your grand revelation, Paul. Glad to know you're finally on the same page with us about what bad shape this country's in after decades of Keynesian monetary policy. Too bad you'll advocate more of the same, which will result in more of the same devastation to poor and middle class working Americans. Jackass.
Editor in Chief, THL
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