Third Depression WatchThe suffering of the unemployed and under-employed is ignored by Washington politicians while they curry favour with the rich and powerful by showing great concern over "inflation", the read worry of every bond coupon clipper. Just shows that government ignores "the little people" while it runs in circles and jumps through hoops to entertain the rich and powerful.
Last year I warned that we seemed to be heading into the “Third Depression” — by which I meant a prolonged period of economic weakness:Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.Brad DeLong points us to Macro Advisers, which has now downgraded its estimates for second-quarter growth. As Brad says, these estimates now suggest that we have now gone through a year and a half of “recovery” that has failed to make any progress toward closing the gap between what the economy should be producing and what it’s actually producing.
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.
And nobody in power cares!
Oh... and there is this from Krugman:
Who You Gonna Bet On? An UpdateThe media in the US are the lapdogs of the rich and powerful. They make sure that truth and fact is not heard. Instead they spread the lies and dogma that the elites need to keep the "little people" confused and cowed.
It’s not quite a year yet since Business Week ran a piece ridiculing my concerns about prolonged economic weakness, comparing it to the wisdom of John Paulson, who saw a boom — particularly in housing — just around the corner. Still, it seems worth revisiting.
How do you think it’s going?