A New York Times best-selling call to arms from Nobel Prize–winning economist Paul Krugman.
The Great Recession is more than four years old—and counting. Yet, as Paul Krugman points out in this powerful volley, "Nations rich in resources, talent, and knowledge—all the ingredients for prosperity and a decent standard of living for all—remain in a state of intense pain."
How bad have things gotten? How did we get stuck in what now can only be called a depression? And above all, how do we free ourselves? Krugman pursues these questions with his characteristic lucidity and insight. He has a powerful message for anyone who has suffered over these past four years—a quick, strong recovery is just one step away, if our leaders can find the "intellectual clarity and political will" to end this depression now.
Krugman (Fuzzy Math), winner of the 2008 Nobel Prize in Economics, takes an edifying and often humorous journalistic approach to the current economic crisis in this accessible and timely study. Rather than provide a mere postmortem on the 2008 collapse (though relevant history lessons are provided), Krugman aims to plot a path out of this depression. He maintains that "We are suffering from a severe overall lack of demand;" as every purchase is also a sale, everyone's income is someone's spending , and few are currently spending. This "paradox of thrift," when everyone cuts back and tries to pay off old debt at the same time, ensures a stagnant economy when no new debt is issued, the cycle continues, for one man's debt is another man's asset. Krugman suggests, then, that "the government spend where the private sector won't," la FDR's workers' programs during the Great Depression. The problem, of course, arises when politics enters the equation some view government intervention as a gateway to socialism, whereas others can't agree on appropriate "shovel-ready" projects to spend money on. Krugman has consistently called for more liberal economic policies, but his wit and bipartisanship ensure that this book will appeal to a broad swath of readers from the Left to the Right, from the 99% to the 1%. Illus.
Customer ReviewsSee All
Well written, witty, very Krugman-esque
This book has filled in all the holes I had about what has happened for the past 5 years as well as what to do now. I wish everyone could read this...
Highly recommend to those who want to learn about the European debt crisis or just how economics works. This is a great book.
Krugman presents in a clear way what the government must do to end the current depression. Some highlights are:
1- his explanation of the current situation in Europe is very good - he is very clear on why the policy responses in Europe and the US are so different.
2- I would have liked comments on why tax cuts is not a better alternative at this moment.
With so many people hurting, the government must do more!!!!
Excellent book. I highly recommend it.