Paul Krugman says that we’re in a depression.
When I took Econ 101 back in 1965, I was taught that in order to have a depression one first needed a recession and that in order to have a recession one needed two quarters of economic contraction. We haven’t had “negative growth” in the economy for several years. Growth has been lousy but not negative. I don’t understand how that makes for a depression, but I don’t have a Nobel Prize for Economics either.
Dr. Krugman does have such a prize, and his novel definition of a depression doesn’t really make sense to me. He seems to believe that it has been caused by—I’m not making this up—”misguided budget cuts.” Federal government spending has gone up every year that I’ve been alive, and aggregate spending for all levels of government has been up every year for the last decade. What cuts? What depression?
Well, maybe Dr. Krugman is depressed. Perhaps it’s time for a med check.
As Ed Morrissey notes:
However, maybe we shouldn’t point out these facts. If the Left wants to argue that Obama has led us into a depression, far be it from me to dissuade them.
Is it November yet?