Dr. Jekyll and Dr. Krugman

That is, Dr. Krugman on economics instead of  his Hydeian political madness. Here are two concise perspectives on how to escape the current economic recession (we are only technically out of recession, not in any meaningful sense). The first explains, with reference to one of the most appropriate historical analogies, why temporarily increased government spending should not result in a long-term rise in the government's debt burden. Essentially, this is because expansionary fiscal policy increases economic growth and increases inflation--both of which erode the real burden of any incurred debt. The key is to ensure that new entitlement programs are not a part of expanded government spending. The second explains the other likely way out--continued high levels of bankruptcy and default. This path will take longer and result in less economic growth in the long run. It is the path we opted for in the 30's and the one Japan has opted for since its financial collapse 20 years ago. In both cases economic growth was minimal at best. So far, it is the path we are on--supported mindlessly by the repubs and cravenly by the dems. http://krugman.blogs.nytimes.com/2010/09/03/paradoxes-of-deleveraging-and-releveraging/ http://krugman.blogs.nytimes.com/2010/09/25/default-is-in-our-stars/