Op-Ed Columnist - 1938 in 2010 - NYTimes.com: "The economic moral is clear: when the economy is deeply depressed, the usual rules don’t apply. Austerity is self-defeating: when everyone tries to pay down debt at the same time, the result is depression and deflation, and debt problems grow even worse. And conversely, it is possible — indeed, necessary — for the nation as a whole to spend its way out of debt: a temporary surge of deficit spending, on a sufficient scale, can cure problems brought on by past excesses."
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[from a reader, not GOFACT]
I am so glad to see Dr. Krugman remind his readers of the inspiring leadership that FDR exhibited in dealing with the great depression. But with a completely dysfunctional Senate, not even he could get what's needed today to get done. We need a CCC. We need a WPA. And yes, as Dr. Krugman so wisely points out, we need a far more robust stimulus that has been previously enacted. But it's not going to get done. And as of November, the spiral to disaster will emulate the swirling eddy in the bottom of a flushed bowl.
If only Obama had appointed Dr. Krugman as head of the Treasury or as his prime economic adviser. But he didn't and the mess as been made and the consequences are going to be severe.
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