housam Jarrar

Why Aren't We Undergoing Another Great Depression?

It is amazing that a well read and reputable author as krugman would totally dismiss two very important factors in his misguided agrument .First,the big assumption that governments can control economies via producing inflation which oddly enough has never been proven,especially after a credit bubble(no examples of such a scenario can be located in any counties history..period).Secon... the governments lack of action during the great depression was unfortunate,it allowed the economy to reset.those who should have been allowed to go bankrupt were allowed to fail and debt was mostly defaulted,which allowed the economy to be revived when a stimulus plan was introduced.fast forward to today and what we see is a government that is trying to pull an elephant out of a hat,without solving what got us here in the first place.