Third Depression

Nobel Prize winning economist and columnist for the NYTimes sounds an alarm - cutting government spending in the short-run (during a recession) will lead to a worse outcome - a depression.

Government Spending or Cutting?

The debate continued at a recent G-20 Summit whether to continue to spend our way out of the Recession (Obama) or begin cutting government spending to reduce deficits and debt (Europe).

Economist Paul Krugman wrote yesterday (see blog post) that reducing spending will bring us the Third Depression and Ireland's example may back up his point.