Tuesday, November 3, 2009

Krugman Pictures the Great Recession

From Paul Krugman's NY Times blog:
The story so far, in one picture

World industrial production in the Great Depression and now:

Basically, we started out with a year that matched the Great Depression, but have since pulled back a bit from the edge of the abyss.
Thinking back, I don't believe governments took this crisis seriously enough. They did leap to action in October 2008 but they've quibbled all the way with right wing nuts hobbling any effort to keep this Great Recession from becoming a repeat of the Great Depression.

There is no place hot enough in hell for the Republicans and the Republican Party that spread the meme of "the best government is no government at all" and I'm hoping the blue dog Democrats get a taste of a marshmallow roast -- not eating, but on the spit -- for enabling the insanity.

And the tragedy is that US unemployment will keep rising through at least half of next year and peak at 11% because Obama didn't have the guts to demand a full size stimulus.

Here in Canada the Conservative party assured us that we would side-step the economic meltdown because they had been prudent. At first it looked like we might, but this year the floor had dropped under the economy and our GDP has dropped worse than the US. Again, here is a government that didn't take the financial crisis seriously enough and tried to pinch pennies and now we all must pay full measures of pain. Sad.

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