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Paul Krugman | The Austerity Debacle

Tue, 01/31/2012 - 14:59 — Dave Culver
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  • The austerity doctrine that has dominated elite policy discussion both in Europe and, to a large extent, in the United States for the past two years is a stunning failure of policy.
  • Paul Krugman | Nobody Understands Debt
  • World economy set for another major downturn

Paul Krugman, New York (NY) Times

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Last week (Jan 22-28) the National Institute of Economic and Social Research, a British think tank, released a startling chart comparing the current slump with past recessions and recoveries. It turns out that by one important measure — changes in real G.D.P. since the recession began — Britain is doing worse this time than it did during the Great Depression. Four years into the Depression, British G.D.P. had regained its previous peak; four years after the Great Recession began, Britain is nowhere close to regaining its lost ground.

Nor is Britain unique. Italy is also doing worse than it did in the 1930s — and with Spain clearly headed for a double-dip recession, that makes three of Europe’s big five economies members of the worse-than club. Yes, there are some caveats and complications. But this nonetheless represents a stunning failure of policy.

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Related:

Paul Krugman | Nobody Understands Debt,  Paul Krugman, New York (NY) Times

  • When people in D.C. talk about deficits and debt, by and large they have no idea what they're talking about - and the people who talk the most understand the least.
  • The economic “experts” on whom much of Congress relies have been repeatedly, utterly wrong about the short-run effects of budget deficits.
  • World economy set for another major downturn
  • All the GOP's Gekkos
     

World economy set for another major downturn, Nick Beams, World Socialist Website

  • Despite the trillions of dollars handed out to the banks and financial institutions over the past three years by governments around the world, nothing has been resolved.
  • Who Will Fix the Economy?
     

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