Paul Krugman opines that we might be well on our way to 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.
Krugman regrets that policy makers (Europe and the US) seem more intent on resurrecting the corpse of Herbert Hoover rather than spend, spend, spend. Krugman writes that even the financial markets understand that spending is equally as important as long-term financial stability. Sadly, this is not the road that is being chosen and, now with failure as an option, who will suffer?
The answer is, tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again.