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Ear to the Ground

Krugman Calls It a Depression

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Posted on Dec 11, 2011
April and Randy (CC-BY-ND)

A bread line is pictured in sculpture at the FDR memorial in Washington.

The Nobel Prize-winning economist writes in his New York Times column Sunday that even though “it’s not a full replay of the Great Depression,” people continue to suffer without work and we should call the thing by its name.

The economy isn’t the only area where Krugman sees the world backsliding into the darkest recesses of the 20th century. Looking to Europe, the columnist finds nationalist, racist, authoritarian parties gaining political power.

Paul Krugman in The New York Times:

It’s time to start calling the current situation what it is: a depression. True, it’s not a full replay of the Great Depression, but that’s cold comfort. Unemployment in both America and Europe remains disastrously high. Leaders and institutions are increasingly discredited. And democratic values are under siege.

On that last point, I am not being alarmist. On the political as on the economic front it’s important not to fall into the “not as bad as” trap. High unemployment isn’t O.K. just because it hasn’t hit 1933 levels; ominous political trends shouldn’t be dismissed just because there’s no Hitler in sight.

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Hollywood Russ's avatar

By Hollywood Russ, December 13, 2011 at 12:32 pm Link to this comment

First and Fourth Amendment rights in this country have been seriously eroded.
We all knew this was a depression at least two years ago. I was calling it a
depression four years ago. Economies are strange beasts. They move in cycles.
I’ve personally lived through a dozen recessions, some were light, some were
severe, but this is an economic depression. No doubt about it. The effects on
politics are polarization with the corporate powers that be become entrenched
using fear mongering, divide and conquer tactics. The storm troopers that have
been marching over the flesh and blood of the people in the streets are just the
beginning. Even in times of prosperity, there can be social unrest (the Sixties)
but take away everything that a person has, except their dignity, and there will
be blood in the streets. The Occupy Movement is the tip of the iceberg. There is
an deep well of discontent in this country. Unless economic conditions improve,
America will become an even more violent society. The Summer of 2012 could
prove to be one of open battles in the streets between the People and the
Powers that Be. America used to be a beacon of hope to the world. Now we are
considered a major threat to world security. Our own people have no protection
against search and seizure by the police/storm troopers. Privacy rights have
been eroded as well as the right to speak openly against government policies. I
fear for the children who are being born today. What kind of world are they
going to inherit? One of shortages, authoritarian government and domestic
instability. I’ve never owned a gun, but I am almost at the point of purchasing a
rifle for self-defense. To quote the Clash, “We they break down your front door,
how you gonna come? With your hands in the air, or on the trigger of a gun?”

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Samson's avatar

By Samson, December 13, 2011 at 11:30 am Link to this comment

If he’s worried about the rise of right-wing,
authoritarian rule, he just needs to look closer to
home.  Mr. Krugman puts this list in his article.

- “A proposed election law creates gerrymandered
districts designed to make it almost impossible for
other parties to form a government;”  Check, we got
that in the US.  The parties gerrymander the
districts to keep their own in power.

-  “judicial independence has been compromised, and
the courts packed with party loyalists;”  Check, we
go that in the US.  The courts that were supposed to
be a check and a balance now routinely refuse to
challenge an executive branch the second they utter
the magic words ‘national security’.  The courts have
long since been packed with pro-corporate party
loyalists.

- “state-run media have been converted into party
organs, and there’s a crackdown on independent
media;”  -  Check, we got that in the US.  Faux was
always Roger Ailes Republican tv network. And CNN is
pure corporate news.  Any other political voices that
aren’t Republican and/or pro-corporate are banned
from the nations airwaves

- “and a proposed constitutional addendum would
effectively criminalize the leading leftist party.” 
Check, got that too. Well, not the constitutional
amendment, mainly because its clear our rulers regard
the constitution as a joke.  But we’ve seen in recent
weeks thousands of storm-trooper attired riot police
attacking those who dare to try to challenge
corporate power.

Of course, you can add to that bills in Congress that
not only allow but mandate military indefinite
military detention to anyone whom some government
official writes a memo saying they gave some vague
support to some group that has just been declared to
be an ‘associated force’ with terrorists.  And
another bill to impose much stricter censorship and
repression on the Internet in the name of
‘intellectual property’.

Meanwhile, we are presented with a joke of an old
Soviet style election where all the ‘major’
candidates will continue the unpopular wars and who
will give the Wall $treet bankers anything they ask
for.  While sending the FBI and the riot police after
anyone who expresses any opposition to this.

He might be worried about authoritarian rule in
Hungary, but far more people are worried about the
rise of authoritarian rule in America.

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By Doubtom, December 13, 2011 at 9:53 am Link to this comment

All that remains is to decide if it’s to be a peaceful revolution or a violent one.

If I were among the “Greedy Bastards” (by Dylan Ratigan) I’d be very worried right
about now.  Everything has a limit,, including tolerance.

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By prosefights, December 13, 2011 at 8:05 am Link to this comment

From: “David McCoy” .(JavaScript must be enabled to view this email address)
Sent: Sunday, December 11, 2011 1:01:46 PM
Subject: URGENT!

To all interested parties:

At a time when citizens need accurate information about air and water pollution and degradation by government entities, it is imperative to have objective monitoring and informed representation at public hearings.

In public meeting after public meeting the public has been misinformed, lied to and critical information that affects their heath and welfare is omitted, obfuscated and manipulated. We know fighting for accountability is an uphill battle. Citizen Action has continually done extensive research, sued government entities for withheld information and been persistent in demanding accountability where there is none.

For the first time in six years, Citizen Action is threatened by lack of funds. Grants have dried up and donations are few. This is a time when a request for support and funds is necessary. Donations are tax deductible since Citizen Action is a project of a New Mexico Community Foundation as a 501(c)(3).

If you find the work of Citizen Action valid, informative and useful this is the time to make a monetary contribution so the doors can remain open.

I wouldn’t ask if I didn’t have to.

Thank you,

Dave McCoy
Director, Citizen Action
PO Box 4276
Albuquerque, NM 87196-4276

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By diman, December 13, 2011 at 6:45 am Link to this comment

It is highly symbolic that this so-called economic genius received his Nobel Prize pay-off in 2008 at the height of the financial meltdown, don’t forget the people who are ripping us off, attended his lectures and read his “scientific” work and basically come from the same clique. Remember this, no economic scholar should be given a Nobel Prize under current financial system of outsourced slave labour,fractional reserve system,compound interest, FIAT currency and sovereign nations borrowing money from international banksters at interest instead of issuing and controlling its supply themselves. How can anybody be awarded a Nobel Prize for a supposed achievement in a system that is fraudulent in its nature?

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By diman, December 13, 2011 at 6:31 am Link to this comment

And CONSOLIDATION I would say.

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By do over, December 13, 2011 at 3:08 am Link to this comment

It’s not a depression, it’s an EXTRACTION.

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By Doubtom, December 12, 2011 at 10:42 pm Link to this comment

Are the economists finally catching up to what many have been saying for quite a
while now…we’re in a depression;  everyone, especially government officials are
scared to death of using that word.  How bad does it have to get before we break
down and call it what it is?

Report this
Blueokie's avatar

By Blueokie, December 12, 2011 at 9:42 pm Link to this comment

Obviously Krugman didn’t get the memo.  According to the duopoly and the corporate media, this is the “new normal”.  Wonder how bad it has to get before it is a depression.

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By John Steinsvold, December 12, 2011 at 7:56 pm Link to this comment

An Alternative to Capitalism (if the people knew
about it, they would demand it)

Several decades ago, Margaret Thatcher claimed:
“There is no alternative”. She was referring to
capitalism. Today, this negative attitude still
persists.

I would like to offer an alternative to capitalism
for the American people to consider. Please click on
the following link. It will take you to an essay
titled: “Home of the Brave?” which was published by
the Athenaeum Library of Philosophy:

http://evans-
experientialism.freewebspace.com/steinsvold.htm

John Steinsvold

“Insanity is doing the same thing over and over and
expecting a different result.”
~ Albert Einstein

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By prosefights, December 12, 2011 at 7:34 pm Link to this comment

?

http://urbansurvival.com/week.htm

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By litlpeep, December 12, 2011 at 7:24 pm Link to this comment

It is very depressing to read of an economist who, arguably, is our most politically sensitive economist in the US, calling a depression by its proper name…
THREE YEARS AFTER IT STARTED!

It is news only because the “news” is so retarded.

But, WTF, retarded news fits a retarded government & political class and a retarded business class and a retarded military and national insecurity class….

Report this

By joegod, December 12, 2011 at 4:20 pm Link to this comment
(Unregistered commenter)

Shoes4industry 4 PREZ 2012….these are practical,common sense
ideas,fair….which is why the duopoly party would never do any of it! Why
can’t we get guys like this into Congress and the White House?

Report this

By joegod, December 12, 2011 at 4:05 pm Link to this comment
(Unregistered commenter)

I’m afraid I have to agree with some of the terribly depressing comments
here…unless us masses are united under a common philosophy and
somehow find a way to consolidate/organize on a mass level, we will one
day be finished off and put out of our misery;the first step is to realize that
our society cannot sustain itself for much longer under the system we’ve
been born and bred to have infinite faith in-sadly there are still many
people who refuse to come to grips with this reality; people have to
enlighten themselves and really think about whats at stake…otherwise we
give in to our fear and frustration and anger,resulting in nation-wide
protests and riots, which will accomplish only our destruction. We the
People in 2011 do not stand a chance in a violent revolt. Yes,there is
bound to be physical confrontations and mishaps in the eventual upheaval,
but if most of us can adhere to a collective revolution of the mind, there
may be hope. Because first we have to believe that change is
possible,which,let’s face it, no one really does anymore.

Report this

By joegod, December 12, 2011 at 4:05 pm Link to this comment
(Unregistered commenter)

I’m afraid I have to agree with some of the terribly depressing comments
here…unless us masses are united under a common philosophy and
somehow find a way to consolidate/organize on a mass level, we will one
day be finished off and put out of our misery;the first step is to realize that
our society cannot sustain itself for much longer under the system we’ve
been born and bred to have infinite faith in-sadly there are still many
people who refuse to come to grips with this reality; people have to
enlighten themselves and really think about whats at stake…otherwise we
give in to our fear and frustration and anger,resulting in nation-wide
protests and riots, which will accomplish only our destruction. We the
People in 2011 do not stand a chance in a violent revolt. Yes,there is
bound to be physical confrontations and mishaps in the eventual upheaval,
but if most of us can adhere to a collective revolution of the mind, there
may be hope. Because first we have to believe that change is
possible,which,let’s face it, no one really does anymore.

Report this

By Shoes4Industry, December 12, 2011 at 3:29 pm Link to this comment
(Unregistered commenter)

Here’s a common sense way out of this “depression”...

1. Lower the SS retirement age to 60. Free up middle and upper management and lower positions for younger, healthier, less expensive workers.

2. Remove the cap on Social Security contributions to pay for new and future retirees.

3. Limit consumer credit interest rates to 15% max. This will reduce consumer debt and promote consumption without costing taxpayers a cent.

4. Lower the eligibility age of Medicare to zero. It’s an insurance (not a health care) program. Younger, healthier contributors will dramatically drive down cost and increase savings. Employers will be out of the health care business.

5. Rescind the Bush tax cuts immediately on those making over $250K and increase the rates on those making over $1M+ to Reagan era rates. Tax all executive pay and bonus schemes at 50%.

6. Rewrite underwater mortgages by “splitting the difference” between current market value and what is owed, (4% -30 yr. fixed) both parties take a hit, homeowners have incentive to stay and pay and banks are not stuck with vacant, non-performing assets.

7. Make all educational expenses tax deductible.

Problem solved.

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bonito's avatar

By bonito, December 12, 2011 at 1:57 pm Link to this comment

Unless We forget, I would like to remind All that,
during the great Depression, most households in this
country were supported by a male Bread winner. Most
Women worked in the home and the Family depended on
the Man of the house to provide the necessary funds
to support the Family.

The government during the 1930’s stated the
unemployment figures to be 25% of the work force,
that would equate roughly to the same amount as 9.50%
of today’s work force of not only the Men, but also
the majority of Women whom are now employed outside
of the home, and, are very depended upon to provide
the necessary income for a Family to survive in
today’s Depression or, near Depression depending upon
the way one might view their circumstance.

To Someone who is under-employed or employed and
neither group is making enough to put Beans on the
table, this is a severe Recession, to One whom is no
longer employed,and with no hope to having a Job in
the near future, I would certainly agree that this is
a Depression.

During the same period in the 1930’s, the U.S.
Congress as well as the Administration, did allow
monies to be spent to alleviate the suffering of the
masses,  but not until it became clear that people in
the streets were in near Rebellion, but mostly
because they were fearful The Workers were about to
rise up, throw off their chains, turn Communist, or
otherwise disrupt the normal flow of Wealth from the
poor, working poor, and others to the 1% that thought
they were entitled to the Wealth of the Nation.

Report this

By Textynn, December 12, 2011 at 12:36 pm Link to this comment
(Unregistered commenter)

European austerity still has single payer and higher education paid for to a large degree. Americans have been struggling in health care disenfranchisement hell for decades.  See how mad Europe is at the private banking scum.  What do they fear most.  Having to live like Americans.

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By TVardalos, December 12, 2011 at 11:15 am Link to this comment
(Unregistered commenter)

Krugman really doesn’t have a clue (as usual) and for the most part is just another
media instrument for the current domestic policy talking points. The Depression
and what’s happening now is from completely different causes. Folks are having
hard times because they have been victimized by the greatest robbery in human
history, and, the guilty not only go free and uncharged, but with full pockets.
Congress enabled Wall St and Banks to rip off Americans, and now the DoJ has
become complicit since they’re not prosecuting any of the guilty. The entire
structure is rotten to the core.

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Outraged's avatar

By Outraged, December 12, 2011 at 11:08 am Link to this comment

Article: ” they have created immense anger, with
many Europeans furious at what is perceived, fairly
or unfairly (or actually a bit of both), as a heavy-
handed exercise of German power.

Nobody familiar with Europe’s history can look at
this resurgence of hostility without feeling a
shiver. Yet there may be worse things happening.

Right-wing populists are on the rise”

We see this same condition here in America. The
vicious stances that some take should alarm people.
They would rather people die without health
insurance, they believe the healthcare law infringes
on their rights and they have the mentality that if you
don’t share their depraved worldview, you are less
than worthy of life.

In debate they don’t argue a point, they attack. They have little patience for anyone who would not sign on to their position, always have a double stand, ignore facts and feel justified in taking the stance that there is no such thing as a victim, only weak useless people.

Consider the posters here that would fit into this description:
“Right-wing populism is a political ideology that rejects existing political consensus and combines laissez-faire liberalism and anti-elitism. It is considered “right-wing” because of its rejection of social equality and government programs to achieve it, its opposition to social integration, and its nativist overtones. It is considered populism because of its appeal to the “common man” as opposed to the elites.”

http://en.wikipedia.org/wiki/Right-wing_populism

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mrfreeze's avatar

By mrfreeze, December 12, 2011 at 9:15 am Link to this comment

I have had a sinking feeling for years that the lives of regular folk (I consider myself to be “regular”) were under the control of a massive corporate cabal. I’m not a conspiracy theorist but, now more than ever, I see the world aligned with corporate interests on one side and literally billions of “workers” on the other….and the workers have lost. It is from this platform of inequality and wealth disparity that ugly movements and violent revolutions are born. I think, in the near future, we will witness some truly terrible uprisings, massive hate crimes and other inhuman activity….

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By surfnow, December 12, 2011 at 8:49 am Link to this comment

Krugman is such an NPR-CNN liberal. He’s no more progressive than Obama is or Clinton was. Just becuause there’s no one named Adolf Hitler or Mussolini it doesn’t mean we are not deep down that slippery slope of fascism.

Report this

By balkas, December 12, 2011 at 8:26 am Link to this comment

fewer resources on earth, ever rising population, and global warming
most likely wld cause more wars, poverty, insecurities and possibly death
to as many as 6bn people in just few coming decades.

and, folks, the world’s 0001 to 10% of earthlings who control the army,
WMD, spy agencies, police may be wishing for any excuse to finish off
blns of people.
the planet is very small; too small; appetite of the, say, one percent,
insatiable, so i expect just such an outcome—global warming being an
excellent tool to get the job done. tnx

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prisnersdilema's avatar

By prisnersdilema, December 12, 2011 at 8:16 am Link to this comment

Hitler has already appeared, but this time, it is Hitler by committee, Hitler
disguised, as a War on Terror, that is instead the source of terror itself. It calls
everything it does by another name. But the result is the same. 

Don’t you hear the steady march of corporate boots in the night?

Marching from country to country, hidden under the blanket of fear. To protect us,
while they destroy our freedom to resist, and inflict the corporate states
pathology, onto each and every one of us. 

No they won’t call it depression, because self diagnosis, is not what sociopaths
do.

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By GW=MCHammered, December 12, 2011 at 7:07 am Link to this comment
(Unregistered commenter)

Like ‘Our New Economy’ brought to you by our government and our K/Wall Street, EBT (Electronic Benefits Transfer) and SNAP (Supplemental Nutrition Assistance Program) are ‘Our New Breadline.’

But this breadline is veiled so the American masses more readily swallow their red, white and blue cool-aide as their incomes, investments, retirements, and homes are stolen - all during time of war.

Now don’t look around you. Just shake those red-white-blue pompoms you blindfolded patriots.

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By Dennis in MI, December 12, 2011 at 7:03 am Link to this comment
(Unregistered commenter)

“the human condition” ?  CRITICAL
Krugman says we haven’t hit the UE rate of the great depression, but we have, take a gander at shadowstats. 25% UE is just as bad and 47 million americans on foodstamps is an electronic soup line, WORSE, than the great depression.

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By ardee, December 12, 2011 at 6:01 am Link to this comment

Does Krugman make the case that economic hardships bring about fascism and separatism? If so what does this say about the human condition?

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