Paul Krugman on our Current Depression

a significant proportion of the economics profession has spent the last three decades systematically destroying the hard-won knowledge of macroeconomics. It’s truly a new Dark Age, in which famous professors are reinventing errors refuted 70 years ago, and calling them insights.

- Paul Krugman

In the fall of 2007, I read Prof. Paul Krugman's NY Times column with great interest, because in it lay the seeds towards understanding our current calamity.  In it he inveighed against the recklessness of the Bush junta's tax policy and their pro-corporate policies that had boosted big business' bottom-line, but failed to produce any meaningful or sustained growth for ordinary citizens.  The dismal jobs report that emerged earlier that month, in which Krugman referenced, was a precursor to the worst economic turn-down since the Great Depression of 1929.

Likewise in today's NY Times op-ed he re-iterates -what should be obvious to all who never bought the original green-sprouts argument offered by the high-priests of commerce- is that "we’re looking at a lost decade."  He proclaims that given the misaligned interests of governments across the globe, that we are witnessing the solidification of the Third Great Depression of the modern era.

To quote:

We are now, I fear, in the early stages of 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.

With the cumulative failures of modern finance and crony capitalism witness to all and the well anticipated onset of resource scarcity, climate change, and ecological collapse posed to overwhelm all nations, I'm quite confident that Malthusian arguments will dominate this last century of humanity.

Welcome to the beginning of the end...