Nobel Prize Winning Economist Paul Krugman, a NY Times columnist, has stated recently that the United States is in danger of falling into a “Third Depression” that will last for many years! 🙁
This is not the first time the suggestion has been made, mostly out of fear, that the economic downturn that began in December, 2007, may slip further into a long range deterioration in employment, housing, corporate growth, state and local government services, and sustainability of the government “safety net”! 🙁
Krugman describes what he calls the “Long” Depression of 1873-1879, begun by the Panic of 1873 on Wall Street, but causing economic instability for two decades after the formal end of the event, lasting until the turn of the 20th century!
Of course, the later “Great” Depression of 1929-1939, which saw a revival from 1933-37, but then a further decline in 1937-38, was the worst economic times this nation has ever seen! 🙁
The problem in Krugman’s estimation is that MORE economic stimulus is needed, rather than less, and this debate about spending versus the deficit is raging in Washington, DC, and will determine the future of this economic downturn we are living through, which is called by many others besides Krugman, as the “Great Recession!” 🙁
IF the Republicans, with their lack of ideas on the economy other than more tax cuts for the rich, somehow regain control of both houses of Congress in the midterm elections, then it seems quite clear that we are doomed to a further decline and total social disintegration, as if conditions do not improve, the danger of a breakdown of law and order is a real threat! 🙁
As the author stated in an earlier entry, we cannot afford to let 2010 and after become 1937-38, when Franklin D. Roosevelt gave in to criticism of government spending, cut government programs, and triggered a new economic collapse only turned around by World War II!
So the midterm elections are the key to our economic future, and will determine much of the next decade of economic history for all Americans!