End This Depression Now!

Oct 22, 2012 Dan Raymo rated it 5 of 5 stars

I recently read Nobel Prize winning economist Paul Krugman's new book, End This Depression Now! It offers a relatively simple solution to alleviate the financial crisis that we're currently in. Before offering this solution however, he provides a fairly concise, yet comprehensive overview of economic theory (excellent for those of us that spent Macroeconomics 101 in a hangover induced stupor) and a complete history of how we came to this point. (Spoiler alert!) Once he detailed how the economy c...more I recently read Nobel Prize winning economist Paul Krugman's new book, End This Depression Now! It offers a relatively simple solution to alleviate the financial crisis that we're currently in. Before offering this solution however, he provides a fairly concise, yet comprehensive overview of economic theory (excellent for those of us that spent Macroeconomics 101 in a hangover induced stupor) and a complete history of how we came to this point. (Spoiler alert!) Once he detailed how the economy could be turned around with increased stimulus and mortgage debt forgiveness, I was convinced he was correct, not because that's what I always believed, or it matched my political leanings, but because he backed it up with extensive research, facts and reason.

Once I began to ponder this solution, I wondered, based on what I'd read, why anyone wouldn't agree with this solution...I wanted to hear the opposing view, but I wasn't quite sure what to read. Supposedly modern supply-side economics was born during a lunch between economist Arthur Laffer, Dick Cheney, and Donald Rumsfeld, where Laffer famously drew a bell curve on a napkin, demonstrating that as taxes were raised beyond a certain point, tax revenues actually fell, as people were discouraged from working. Well I eagerly read the napkin, and still found myself feeling unfulfilled. I know the right's solution is to lower taxes and remove more regulation, but taxes haven't been this low since before the Great Depression. It seemed counter-intuitive...beyond reason really. And doing further reading on the Laffer Curve, by almost all estimates, our taxes were already below the point of optimum revenue. As far as regulation, it seems very apparent that the removal of regulations were the catalyst of this financial crisis. The dismantling of the Glass-Steagal Act, which had been in place since 1933, most certainly opened the door for the melt-down of the financial sector. Former Citigroup CEO, who was instrumental in lobbying for Glass-Steagal's repeal, has admitted that it was a mistake. In a letter to the NY Times, Reed wrote, "We learn from our mistakes. When you're running a company, you do what you think is right for the stockholders. Right now I'm looking at this as a citizen."

Where to now?

I recalled an argument I was having with someone about supply-side economics, where he countered, "You need to read Ayn Rand." It seemed odd that he'd recommend fiction to back up his argument, as if you were discussing how to reduce crime and said, have you read Superman comics? But I've also heard many of the great conservative thinkers sing her praise (notably, Alan Greenspan and Paul Ryan), so I ordered Atlas Shrugged.

At this writing, I am only about half way through (I was horrified to find that it's 1,200 pages.) The writing is clumsy (in the kind of way a James Bond villain outlines his whole evil plan in a long monologue, as a laser heads towards 007's nuts.) The characters are cartoonish in their exaggerated stereotypes...they're either corrupt and incompetent pencil pushers, clownish academics, or heroic highly reasoning builders of things without compassion. That being said; I'm quite enjoying it and can't put it down. Rand is a master storyteller.

Her message seems quite simple and straightforward:

Corruption, incompetence, and compassion = bad.
Creating things, selfishness, honesty and reason = good.
I think people of almost any political persuasion would agree with her on most of this, with the exception of compassion and selfishness (there'd probably be a split on those.) In this novel, government is the tool of corruption, not the cause of it. The incompetent industrialists are the real villains. So I guess the conservative take away is, if we can minimize the size of government, we can minimize corruption. A classic case of throwing out the baby with the bath water. I honestly don't think Rand would have anything to do with today's Republican party. The only things they seem to agree with her on is that compassion is bad and selfishness is good. Not that she'd have anything to do with the Democratic party (the party formally known as the Republican party.)

It's been said that the simple solution is usually the best solution. But a simple solution isn't effective and elegant because it is easily arrived at or comprehended, but because it's been carefully thought out and researched. (less)

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Mar 10, 2013 Kevin Cecil rated it 3 of 5 stars · review of another edition

Shelves: male-author, politics

I probably should have actually read END THIS DEPRESSION NOW! instead of listening to the audiobook version. Not only could I not see the multiple charts Krugman cites, but my mind also wanders more easily during the dry segments. I figured I listen to enough political podcasts that I could trust myself to pay attention, but nope. Half way through an explanation on the dangerous economic side effects transferring to the Euro caused Greece and Spain, my stupid brain starts wondering about the las...more

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Jun 14, 2012 Bill Kerwin rated it 4 of 5 stars

Shelves: politics

The thing I like about Krugman--besides the fact that he was right about Bush's mendacity and right about the economy's weaknesses before almost anybody else suspected either--is that he presents complex economic arguments in clear and simple prose, clear enough that a right-brained, liberal arts type like myself can understand them. Unfortunately--and this is not Krugman's fault--that doesn't mean I can remember his explanations adequately after a few days have passed, let alone comment upon th...more

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May 29, 2012 Aaron Arnold rated it 5 of 5 stars

Shelves: economics, politics, read-in-2012

That the developed world has been caught in a perfectly foreseeable, avoidable, solvable slump for four years now is so stupid it would be funny if it weren't so sad. Millions of man-years have been thrown away as the result of economic policies that shouldn't have passed the laugh test in an age where anyone can pick up a book on the Great Depression and read about what went wrong. Yet here we are, trillions of dollars poorer than we should be, standing by as elected leaders make decisions on f...more That the developed world has been caught in a perfectly foreseeable, avoidable, solvable slump for four years now is so stupid it would be funny if it weren't so sad. Millions of man-years have been thrown away as the result of economic policies that shouldn't have passed the laugh test in an age where anyone can pick up a book on the Great Depression and read about what went wrong. Yet here we are, trillions of dollars poorer than we should be, standing by as elected leaders make decisions on faulty, imagined, or no evidence at all. Krugman is a lot more calm when he discusses these things and those people than I would be, and even though his perfectly reasonable prescriptions for economic recovery have an uphill climb to the lofty heights of discourse where real decisions get made, the fact that they are so straightforward and sensible gives me some hope for the future. This book is largely a synthesis of material from the past few years on his blog cleaned up, re-ordered, and organized, which would be somewhat disappointing if the material were not so strong. It reminds me of his earlier The Return of Depression Economics in its subject-hopping structure, but with a somewhat stronger central narrative in the vein of The Conscience of a Liberal. The book tackles many subjects familiar to frequent blog readers: the roots of the crisis; failures of monetary policy; the inadequacy of the stimulus; the roots and remedies for the Euromess; lessons of the Great Depression; and the illogic of conservative doctrines like "expansionary austerity", the "confidence fairy", and "immaculate inflation". Its prescriptions are those that have been tested by history: more direct public infrastructure spending, aid to states (or countries in the case of Europe), accommodative monetary policy including a temporarily higher inflation target, and better trade and environmental policy. As he discusses and refutes objections to his analyses, the Republican Party is a frequent object of criticism, as are clueless European leaders, the finance-industrial complex, economists who have been either misinformed or unhelpful, and fatuous pundits. Krugman has been criticized for his dismissive tone towards people he disagrees with, and while he doesn't ever call someone an idiot outright here, he certainly doesn't spare feelings. Since I happen to agree with his analysis I don't mind when he calls someone out, but I would hope that readers of other political persuasions could concentrate rebuttals on disagreements over any of the facts he talks about and not get hung up over a dismissive tone or academic nerd burns. One of the things that should be obvious to everyone is that no one is helped by this recession-verging-on-depression, and we should all be looking for ways to solve this crisis without regard to the affiliation of who's proposed the solutions. Everyone has a stake in future prosperity, because a rising tide might lift all boats, but an ebbing tide will surely sink many. Krugman doesn't have quite the soaring rhetoric of his hero Keynes, but in clarity and rigor he should certainly be considered on the same plane. Here's hoping that important people check this book out, and that they will have the "Rooseveltian resolve" to take the courageous steps we need to get people back to work.(less)

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Apr 16, 2013 Henriette rated it 3 of 5 stars

I believe Krugman is right when he talks about austerity policies as poison for the economy, because it does not help the lack of demand, rather the contrary. It is also clear that an inflation of 4 % instead of 2 or lower is preferable, because it is a burden that everyone share. Austerity policies hurt ordinary and poor people far more than rich people. It also makes sense to borrow money when interest rates are near or below zero, meaning that the price of taking loans is nill, but it does no...more

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Feb 12, 2013 Jean rated it 4 of 5 stars

Paul Krugman, winner of the 2008 Nobel Prize in Economics has written a great little book about the current economic situation, how we got here, but mostly what can be done to solve the problem. He has dedicated the book to "the unemployed, who deserve better." He describes the current situation as a "depression" because unemployment and lack of demand in the economy has lasted for an extended period of time, a gridlock so to speak. In Krugman's view, getting out of the current depression could...more

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Jan 03, 2013 Alexis Tatore rated it 3 of 5 stars

End This Depression Now! by Paul Krugman

The impending fiscal cliff looms over the nation. America collectively fears spiked taxes, sequestration, and a double-dip recession. Policy makers have been debating how to reduce the federal deficit while ensuring future prosperity. Paul Krugman, a Nobel Laureate in economics, offers a unique solution: disregard debt, increase federal spending, and commence inflation.
Krugman, a professor at Princeton University and writer for the New York Times, relate...more End This Depression Now! by Paul Krugman

The impending fiscal cliff looms over the nation. America collectively fears spiked taxes, sequestration, and a double-dip recession. Policy makers have been debating how to reduce the federal deficit while ensuring future prosperity. Paul Krugman, a Nobel Laureate in economics, offers a unique solution: disregard debt, increase federal spending, and commence inflation.
Krugman, a professor at Princeton University and writer for the New York Times, relates himself to John Maynard Keynes, a famous economic theorist. Known for his understandable explanations with a hint of derision, Krugman set out to “end this depression now!” by instituting Keynesian ideals during slow economic growth. He contributes mainstream economics in a simplistic way to support his statements. However, it lacks depth to ensure comprehensibility, making the book feel too rudimentary at times. He mocks austrians, causing him to lose support from policy makers. Instead, he directs the book toward the informed public. This approach should influence the people to elect policy makers in favor of Keynesian economics.
Krugman’s book describes how to get out of recessions in America. He suggests the government should spend during slow growth and spend less during periods of prosperity. According to him, people have “completely thrown away Keynes’ central dictum: ‘The boom, not the slump, is the time for austerity’” (3). He also wrote about a “paradox of deleverage”, when one person’s spending is another’s income; therefore, by cutting spending, it is creating deflation, thus everyone is harmed. “Even if slashing spending reduces future debt, it may also reduce future income, so that the ability to bear the debt we have … may actually fall” (145). His plan is outlined as follows:
1. Provide states and local governments aid to rehire workers
2. Restart investments in roads, rails, and water systems
3. Debt forgiveness - ⅕ US mortgage he borrowers are now underwater
4. 4% inflation rather than 2%
He justifies raising inflation because it reduces the real value of depression-inducing debt. Without change, he argues, the US and Europe will suffer from prolonged depression and high unemployment.
Yet, Krugman’s theory, which disregards key issues, could cause the US and Europe to suffer. Krugman said the national debt is something owed among the country, but he forgot to include China, Japan and Britain, who finance half the deficits. The treasury, once reserved for US citizens only, granted access to China. Increasing the government debt would lower the credit rating, obliterating confidence in US bonds. Krugman dismisses this problem by stating investors are unconcerned about national debt; suddenly, investors like Pimco’s Bill Gross do not exist. Bond markets jack up interest rates to countries with bad credit - such as Spain, Italy, and Greece - thus the credit rating of the U.S. treasury is important. Krugman also fails to recognize the effects of interest rates: if the current all-time low interest rates increase, it will impact the interest the government is paying, which will increase the deficit. Debt is detrimental for the aforementioned reasons, but it can be avoided with inflation, right? Not quite -- while slight inflation is beneficial because it prompts spending, hyperinflation is harmful because it devalues personal savings (e.g. retiree savings) and creates higher interest rates. As well, it would be risky: economist William Barnett says the Federal Reserve monetary data is so poor, it fuelled the last two asset bubbles. Krugman’s theory heavily relies on the results from the Great Depression; however, he does not account for globalization, which wasn’t a concern during that time period. Most importantly, Krugman has two huge fallacies in his philosophy: 1. people won’t spend less during prosperity (and businesses will surely do anything to prevent this due to profits), and 2. people don’t like owing money.
Krugman deserves recognition for simply explaining economics in an entertaining way; don’t be fooled, though -- it is not the time to cry “eureka!” While it is important to spend during recessions and depressions, it is also vital to cut unnecessary programs so the deficit does not exacerbate. His inability to provide adequate rebuttals and consider certain factors causes a degradation of the book’s rating. Anyone with a newly-discovered interest in economics should read this book. Anyone that is pragmatic should avoid adopting the same philosophy as Krugman. End This Depression Now! deserves a ⅗ star rating: 3 stars for comprehensibility and providing evidence that support the theory, but the fallacies within the stimulus are too colossal to disregard.
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Nov 11, 2012 Kevin rated it 5 of 5 stars

The focus of the popular discussion is on the deficit and the need for austerity. Paul Krugman is the voice of reason and deep knowledge, and he is a master of brilliant communication to the layperson. European austerity is crippling the trailing countries. And our attention should be on creating jobs and demand, which means government investment. When the US took its first tentative steps out of the Great Depression, it was FDR's stimulus programs that ignited the recovery. Then the Republicans...more

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Oct 21, 2012 David Stephens rated it 4 of 5 stars

Shelves: economics

Nobel Prize winning economist Paul Krugman revisits the economic events of the last four years. He skips the explanations of how the financial crisis and subsequent economic collapse happened and instead attempts to unravel the myths and lies surrounding the economy. He offers suggestions of how to ameliorate it and posits that it has been "a combination of self-interest and distorted ideology [that] has prevented us from solving a solvable problem." His overall solution is that of more governme...more Nobel Prize winning economist Paul Krugman revisits the economic events of the last four years. He skips the explanations of how the financial crisis and subsequent economic collapse happened and instead attempts to unravel the myths and lies surrounding the economy. He offers suggestions of how to ameliorate it and posits that it has been "a combination of self-interest and distorted ideology [that] has prevented us from solving a solvable problem." His overall solution is that of more government spending on short-term projects that will produce immediate job growth. Since consumers and businesses aren't spending—and, thus, Krugman's mantra: "debtors can't spend, and creditors won't spend"—the federal government needs to step up and do so. Unfortunately, the conversation has shifted from job creation to debt reduction.

Krugman debunks many myths and points out many overlooked aspects of the last few years. While it has become clear to many that financial deregulation is a problem—especially the repeal of Glass-Steagall, perhaps, the most pernicious act of deregulation—it has not been as widely reported that these deregulations started under the Carter and Reagan Administrations or that regulations weren't updated to account for the shadow banking that had arisen and was still able to perform risky ventures. Also, there has been much fear mongering over the amount of debt the U.S. has accumulated. However, comparing the U.S.'s debt to GDP ratio to that of Japan's or Great Britain's in the past is quite revealing. Both of those countries have or had amassed debt well over two-hundred percent of GDP. The reason they are able to sustain that debt and not become Greece is because they have sovereign currency like the U.S.

The American Recovery and Reinvestment Act, also known as the stimulus, has been a major point of confusion as well. Since the stimulus bill appeared to be a massive package ($787 billion) and has not performed the way the Obama Administration said it would, it has been widely reported that the bill was a failure. However, forty percent of the stimulus was composed of tax cuts, which are stimulative but only marginally so. Some money was given to state and local governments and very little was used for building and fixing roads, which would have been much more helpful. So, the stimulus was somewhat poorly enacted and, according to Krugman, insufficiently small (whether or not this is due to the Obama Administration underestimating the recession, the Republicans watering down the bill, or both).

However, this last assertion brings me to my biggest criticism of the book. Krugman says that a much bigger stimulus was needed, but even liberal figures like Christina Romer and Jared Bernstein who helped create the stimulus furnish problems with a bigger stimulus bill. They both agree the stimulus needed to be around $2 trillion, but as Bernstein says, "I don’t believe we could have efficiently and effectively put that large a stimulus to good use with requisite accountability." While I certainly don't deny that the stimulus needed to be bigger, Krugman gives no explanation how to avoid this problem. And, if he doesn't provide the information to refute the concerns of liberal economists, how likely is this book to persuade any right leaning readers. While Krugman makes many compelling and well-reasoned arguments and I understand this book is aimed at lay people, it just seems that he could go further into detail on many issues which would make his cases that much stronger.

Nevertheless, anyone wanting a summation of the Keynesian arguments on the economy would be well advised to start here.(less)

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Sep 16, 2012 Naomi King rated it 5 of 5 stars

Shelves: current-events, ethics

Krugman brings his terrific analytical skills, combined with deep ethical concern for how the economy should support and care for the populace, to the ongoing global depression. In his addressing the political and economic mistakes we and others have made, he acknowledges his own failures and why he thinks what he does now -- a necessary and refreshing change from the commonplace polarized defensiveness and you're wrong-I'm right dominance of political, and often academic and economic, discourse...more

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Sep 15, 2012 Gábor rated it 4 of 5 stars

Fair warning, you will best like this book if you are a liberal with a soft spot for Keynes' theories. The book offers a well argued proposition on how even more increased government spending is the correct way to get the engine of the (world wide) economy going again. The only problem with this approach, that there were already TRILLIONS thrown around by the (unelected) Federal Reserve with no visible effects as detailed in the GAO report and also that actual (elected) government spending will...more

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Sep 11, 2012 Heather rated it 4 of 5 stars

Having no formal education in economics some of this was a little over my head, but Krugman makes it palatable to even neophytes like myself. I learned a lot from his descriptive but not at all wonky narrative. My interest in the economy sparked, as it did for many I'm sure, after ours tanked. I like to have a working knowledge of what's going on, what's wrong and how it can be fixed and this book fit the bill. I'm a regular reader of Krugman's New York Times Column and his blog and his predicti...more

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Aug 16, 2012 Ob-jonny rated it 5 of 5 stars

I seem to say it often about Paul Krugman's books but I think this is the most important book that has come out lately about economics. It is very current and it breaks down the Euro crisis in such a way as to make it very understandable, but the causes and the outlook. It suggests something that is not in the mainstream media and is unthinkable in Europe. It suggests that the currency union and the Euro itself will never work for fundamental reasons. No amount of fiscal discipline or good behav...more I seem to say it often about Paul Krugman's books but I think this is the most important book that has come out lately about economics. It is very current and it breaks down the Euro crisis in such a way as to make it very understandable, but the causes and the outlook. It suggests something that is not in the mainstream media and is unthinkable in Europe. It suggests that the currency union and the Euro itself will never work for fundamental reasons. No amount of fiscal discipline or good behavior from the banks will fix the problem and they were never the cause to begin with. The problem is that weak economies like Greece and Spain that use the Euro cannot have exports that are competitive because the currency is unnaturally strong. When the currency is strong then the cost of living is higher making labor more expensive. Countries like Germany, Austria, and the Netherlands make the currency strong and their own exports more profitable. He doesn't say it but I wonder if the Euro idea wasn't just a German trick to make their exports more profitable. The only way to fix this is to take the trouble countries (GIPSI: Greece, Ireland, Spain, Portugal, Italy) off the Euro and let their currency float. If it devalues by 50% instantly than so be it, their debt would become managable and their exports much more competitive. This is what happened during the Asian crisis and everything worked out okay in the long run. The book also gives an in depth analysis of austerity and how it has never decreased unemployment in the 100+ times it has been tried all over the world. He argues that the political and ideological enviroment needs to be changed because it has become politically correct for even the Democrats and the left parties in Europe that austerity is the only way to go. He discusses inflation and about how low it has actually been despite all of the Fed's money printing and why it has stayed low. He discusses why inflation can help in some ways and he gives a fascinating example about how the US debt from WWII was actually never paid off but was inflated away. This book is the best method of understanding the important issues in economics that are relevant right now.(less)

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Aug 13, 2012 Doug rated it 3 of 5 stars

Shelves: business, nonfiction

I really like the way Paul Krugman explains complex economic ideas, and this book is no exception. Along with The Price of Inequality: How Today's Divided Society Endangers Our Future, it really highlights some of the structural problems in the economy, the failure of laissez-faire capitalism, and the corrosive effects of too much inequality. His solution to ending the Great Recession seems a little too simplistic, though, and I'm not totally sold. Keynesian economics dictates 'priming the pump,...more

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Aug 06, 2012 Trevor rated it 5 of 5 stars

Shelves: economics

This book is essentially an argument with America’s right. It makes clear what they are doing in forcing America and the world to follow the lunacy of neoliberal economic policies of austerity. It shows that such policies, which turn economics into a morality play, are the main reason for the continued devastation being wrought on the American and world economies. Although I seriously doubt anyone will have the political wherewithal to be able to implement the economic policies outlined here tha...more This book is essentially an argument with America’s right. It makes clear what they are doing in forcing America and the world to follow the lunacy of neoliberal economic policies of austerity. It shows that such policies, which turn economics into a morality play, are the main reason for the continued devastation being wrought on the American and world economies. Although I seriously doubt anyone will have the political wherewithal to be able to implement the economic policies outlined here that would end this depression, that they are necessary makes what we are doing now the moral equivalent of standing by and watching as thousands drown or millions starve to death – oops, given that is exactly the kind of thing we do daily and have done daily for centuries, perhaps those aren’t the best examples to use. If only humans came with a little humanity…

Milton Freidman could begin the first edition of Capitalism and Freedom with a lament that his views had been marginalised by history. Twenty-five years later in the new preface to this book he could hardly contain his delight. He had witnessed a remarkable turn around, Keynesian economics had been more or less vanquished and his supply side version of monetarist radicalism had become received wisdom. Sure it might have been causing havoc all the way from Chile to Russia, but it was only hurting poor people in those places and they don’t count anyway.

The problem is that notions that capitalism never has a crisis due to a lack of demand ought to be self-evidently not the case. In fact, capitalism isn’t the wonderfully self-regulating, rational market, invisible hand paradise that it is often (nearly always?) presented as. In fact, capitalism, and this is for the first time in human history, is that paradoxical economic system were economic crises are due to over-abundance, rather than scarcity. Let me explain. In the past, say under slavery, a real crisis would occur when, for reasons of floods or droughts or some other natural or man-made calamity (think war and you’ll see why I said man-made), we just couldn’t produce enough food or other necessities to keep us all alive. A crisis then was a real crisis and invariably this was a crisis of scarcity. But under capitalism we very rarely have a crisis of scarcity. Where there is scarcity there is demand and when there is demand there is generally someone trying to supply that demand – or so the theory goes.

But when there is an economic shock under capitalism, a global financial crisis, say (not that one of those could ever happen) it is not that people don’t want to buy things, it is not that people do not have things they need to buy – it is rather that no one can make any money out of selling those things. And if you can’t make money from selling things there isn’t any point in making them in the first place. There is more stuff available than people are able to buy and so there is no point producing any more. So, we have a crisis of abundance. There is, in effect, too much stuff in the world (too much supply) and effectively not enough demand. One of the ways to fix this is for the government to step in and to do thing that will stimulate demand.

Now, Republican types will go ballistic right about now. Having been brought up on the kinds of nonsense pedalled under Reagan and Bush and Bush they will believe there is never a time when there is a lack of demand and that what is called for is more money to be taken from government (less taxes) and for more money to be given to the rich. The greatest misnomer of recent decades has been Reagan’s ‘trickle down economics’. A more accurate name would have been ‘gush up economics’. This book demolishes the excuses on the right for stopping fiscal stimulus. It calls for an increase, if we can even manage it, to inflation and for stimulus to be done in a way comparable to how it was done here in Australia – by directing money to the poor, AKA, those likely to spend the stimulus money and thereby actually stimulate the economy. It explains why our obsession with debt is misplaced and why printing lots of money right now simply will not debase the currency nor cause a repeat of the Weimar Republic. I admit I’ve been worried about the whole inflation bogey man for some time – especially given the quantitative easing by the American Fed seemed to be adding incomprehensibly large amounts of money into the economy (something I mentioned on one of Whitaker’s reviews). I can now say my mind has been completely changed on this and much more money needs to be printed and pumped into the American economy immediately.

What Klugman is seeking to do here is worthy, noble and clearly urgently needed. And equally, it is doomed to failure. Not for any of the reasons he mentions in his book – but because I think he has quite misread the political situation that is emerging in the world. He assumes that given the economic truth of his arguments these will, eventually and possibly after painful argument, win out in the end. Truth is meant to do that, right? Except, that would only work on the assumption that the right of politics actually cares about any of this. But any reasonable look at the right in the US or in the UK would have to conclude that they don’t care about any of the effects of their economic policies at all.

They don’t mind that the economy has run aground. They don’t mind that there is massive unemployment and social dislocation. All they care about is that they keep the lion’s share. And if they have to destroy democracy to keep what they already have, so be it. Watching the United States become ungovernable is both breathtaking and tragic – but I expect it to be a process that will continue and it is not just because certain white people don’t like the fact there is a black President. Politics everywhere in the ‘free’ world has become so alienating for people that they no longer watch on in despair, as I still do, but rather they simply don’t watch at all. Instead, they prefer to watch rich and beautiful young people running about and having gold medals placed around their necks while saluting their national flags and mouthing the words to some national anthem or other. Do you think the ‘rich people’ jibe is too strong about our glorious ‘people’s Olympics’ and hero athletes? read this and weep then - http://www.guardian.co.uk/commentisfr...

We live in a world where the belief that unemployment is a kind of holiday people occasionally take when they get tired of working is standard economic theory – rather than, say, that unemployment is a crime against humanity and a gross structural deficiency in our market based economy. This kind of anti-logic is unspeakably insulting – insulting to the unemployed and insulting to everyone’s intelligence. To imply that up to 25% of the populations of many European countries are currently unemployed due to choices of their own laziness would be amusing if it wasn’t so disgracefully self-serving in the interests of the mega-rich who were more than happy to take these people's tax dollars to support their banks.

As this book makes abundantly clear that there are simple things we can do right now to end this depression and to thereby improve the lot of millions and millions of our fellow humans, and of most of ourselves. That we choose not to do these things says infinitely more about us than it does about them. But nothing will be done until we can somehow reclaim our democracy. I'm Irish and so a natural pessimist - I won't be holding my breath.
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Jul 18, 2012 David Rubin rated it 4 of 5 stars

Krugman gives us a great view into the current macro-economic problems facing our nation today. However, in this book he treads lightly on the effect of foreign trade and the trade deficit. For example, he tells us that 85% of the goods and services consumed in the U.S. were produced or provided in the U.S. by U.S. persons. Thus, he says, one person's spending equals another persons income.

On the other hand, this localization seems too simplistic. Go into Walmart outside the grocery section and...more

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Jun 13, 2012 T. Edmund rated it 4 of 5 stars

End This Depression is an objective, positive yet realistic book about how America (and the rest of the struggling world) can work to end the recession that has lasted since 2008.

Krugman is non-partisan, and doesn't hesitate to pull punches where punches are due in discussing political and 'expert' opinion on economics and the recession.

Where End This Depression is refreshing is the novel is very much focussed on solving the problem, something which appears to be missing from the publishing envi...more

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Jun 08, 2012 Peter Danbury rated it 4 of 5 stars

I love Krugman's columns. Week after week, he pulls no punches, and he doesn't throw them wildly either or under the belt. And he makes complicated, number-centric matters understandable to this mathphobic reader. And he just plain makes sense, backing up his arguments with relevant data. All of which I can say doubly for this book, the first of his I've read. I only wish it dealt with what I consider the most formidable long-term problem facing the country and the world--global warming. His Ken...more

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May 29, 2012 Aaron rated it 5 of 5 stars

I thought that Krugman lays out a reasoned view on why Keynesian theory needs to be used in the current crisis. What bugs me about the other side (Hayekian, Milton Friedman, Ron Paul etc) is the fact that they have no history or experience to back their theory up. Folks, it doesn't work! The best example is our Conservative Friends over the Pond. How is Austerity working for you Great Britain? The Chicago School of Economics, along with the Austrians needs to be shut down. It's all a bunch of ho...more

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May 12, 2012 Bryan rated it 4 of 5 stars

After reading this book I have more motivation to write my crazy right-wing junior tea party congressman than I've ever had before, and to let him know how unhappy I am with his votes. This motivation has come from the clear reasoning of Krugman. This is not because Krugman is anti-Right, or ultra-Left, but because of how Krugman clearly lays out the intellectual deficiency among politicians as it relates to macroeconomic principles. These leaders are out of their league, and if I were them, I'd...more After reading this book I have more motivation to write my crazy right-wing junior tea party congressman than I've ever had before, and to let him know how unhappy I am with his votes. This motivation has come from the clear reasoning of Krugman. This is not because Krugman is anti-Right, or ultra-Left, but because of how Krugman clearly lays out the intellectual deficiency among politicians as it relates to macroeconomic principles. These leaders are out of their league, and if I were them, I'd consult as many experts as I could, and at least read a good book now and again, like this book.

I highly recommend this book. Being an election year, there is great debate currently about the appropriate role of government, the appropriate size of government budget deficits, the appropriate amount of government spending programs, interest rates, exchange rates, European crisis, etc. Krugman addresses all of these subjects with an "Ending Depressions for Dummies" accessibility.

A simple review of history should be enough to educate the minds of curious leaders. If that's not enough evidence for a much more Keynesian approach, then surely the advice from well-respected economists will at least cause pause.

Yet the Right marches forward with austerity mindsets, based on fear, pride, obstructionism, and I can't tell exactly what else. There are many on this Right side of the aisle who disagree with his views. Still I'm personally waiting to see any justification for their disagreement with Krugman.

And again, it's not really a partisan book. Although there are definitely different "sides" of economists; Krugman is on one of those sides (the correct side of history, of course, when it comes to macroeconomic policy).

As far as writing styles, I always like Krugman in the press. He is excellent at writing articles. The only critical comment I have about this book is the dozen or so times he says things like "more on that later," or "which I'll address in the next chapter." I don't like to feel like I need to keep track of all of his former comments to tie them into ideas presented hours ago. I just want to read what he has to say. Either don't bring it up, or don't fear repeating yourself, is what I always say. Repetition perhaps is just what the Right needs to experience.

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May 11, 2012 Ian Robertson rated it 5 of 5 stars

Nobel Laureate and frequent New York Times columnist Paul Krugman can come across as a Keynesian crusader. He acknowledges as much in this book, and although he includes the occasional political and professional jibe (taking more shots at the latter than the former), this excellent work should not be seen as a political text at all. End This Depression Now! delivers a timely, well reasoned and well written refutation of the call for austerity and instead an advocation of Keynesian spending as th...more Nobel Laureate and frequent New York Times columnist Paul Krugman can come across as a Keynesian crusader. He acknowledges as much in this book, and although he includes the occasional political and professional jibe (taking more shots at the latter than the former), this excellent work should not be seen as a political text at all. End This Depression Now! delivers a timely, well reasoned and well written refutation of the call for austerity and instead an advocation of Keynesian spending as the only way to emerge from the current economic stagnation. It is a policy document based on Krugman's economic view of the world, and not a political statement. Unfortunately, it will be difficult to disaggregate the book’s message from readers’ own views and from the prevailing political rhetoric, and it will inevitably come across as a political document.

For what are very complex and difficult issues, even for professionals, Krugman keeps his prose chatty (he uses colloquialisms such as "stuff" and popular movie references such as "Treasure of the Sierra Madre" and "Being There") and free of buzzwords, jargon or polysyllabic economics terms. There are no formulas, except his own for success: spend to produce growth, cutback later, or risk curtailing production and employment further and for many years to come.

Written for an American audience, Krugman uses examples from Europe, the UK, and Japan, and of course the US, and draws clear links between the examples and the suggested policy actions. More specifically, he covers:
◦the rise and fall of depression and Keynesian economics;
◦the ins and outs of inflation and deficits (including an very clear refutation of why punitive austerity measures are counter intuitively counterproductive in today's ultra low interest rate environment);
◦income inequality;
◦financial deregulation;
◦financial system instability (Hyman Minsky's important work); and
◦how to end this depression now.

Unlike most post-crisis books, Krugman does not spend much time on the specific causes or explaining how the moving parts worked (or failed to work). Instead, he spends most of the book using evidence and dashes of theory to show broader cause and effect in economics. His central point: from the current base of zero interest rates, cutting spending will shrink economic activity further, and perhaps lower the growth rate permanently. The only solution is to spend to increase demand, cutting back later once the growth trajectory is re-established at its former level.

With his eloquent, plain language refutation of the laissez-faire "freshwater" economists' views, Krugman will no doubt raise awareness for his economic cause via a well deserved wide readership. There are, of course, equally cogent arguments by economists espousing restraint, and they too should be read. Cut through the rhetoric: buy this book and decide for yourself.(less)

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May 05, 2012 Kathie rated it 5 of 5 stars

Your Daily Walk with The Great Minds: Wisdom and Enlightenment of the Past and Present (3rd Edition) (Spiritual Dimensions Series)

By Richard A Singer, Jr.

Experience Immediate Positive Change

Singer had me with the first page. I thought I would gain a few tidbits of insight and understanding of the great minds. Little did I know that I would be immediately captured!

His clarity and insight to the soul and spirit are refreshing.
I found myself shifting into spiritual gear with the first daily meditat...more

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Mar 23, 2013 Daniel G. rated it 2 of 5 stars

Shelves: economics

What if we already knew what works to end the depression and return the world to a state of prosperity?

For Nobel Prize-winner in economics, Paul Krguman, the answer to our current economic problems lies in the works of economists who thought their way through the Great Depression. The economists he has in mind include John Maynard Keynes, Irving Fisher and Hyman Minsky.

Krugman starts with how bad things are now, considers the appropriate Depression Economics – his term for learning economists wh...more

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Jul 17, 2012 Joni rated it 4 of 5 stars

Shelves: business, economics, germany, non-fiction, usa

Krugman makes an informative and in-depth description of the crisis and its possible solutions. He approaches the book academically, structuring it as a long academic paper, yet not allowing it to fall in the sometimes monotonous tone of academic writing. The arguments are mostly founded on Keynesian economic theory, although a lot of historical examples are given to illustrate each of them. While a bit of knowoledge on economics is recommended in my opinion, it is not needed if you are willing...more

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Jul 05, 2012 Travis rated it 4 of 5 stars

Reading this, I couldn't help but think that Krugman's key points could be easily summarized in a page or two. The point of this book, of course, is to allow a lay-reader such as myself to understand those key points, and I think I did come away from the book with at least a slightly better understanding of the economy's current woes. Krugman writes in a matter-of-fact, easy-to--follow manner, surrounding somewhat dense economic theory with breezy anecdotes, analogies, and extended metaphors. It...more Reading this, I couldn't help but think that Krugman's key points could be easily summarized in a page or two. The point of this book, of course, is to allow a lay-reader such as myself to understand those key points, and I think I did come away from the book with at least a slightly better understanding of the economy's current woes. Krugman writes in a matter-of-fact, easy-to--follow manner, surrounding somewhat dense economic theory with breezy anecdotes, analogies, and extended metaphors. It makes for entertaining reading. The problem with the style though is that when I came upon something of substance my brain turned to skim mode. I'm not sure that reading a simple list of Krugman's key points would have proved more informative in the end, because much of the supporting material here was useful and educational. I do think that a few bullet points, or review sections at the end of chapters, would have been helpful. I understand though that with those additions this book would start to look something like a textbook, and a textbook is explicitly what Krugman is trying NOT to write. Ah, well.

Krugman is a leftist and takes every opportunity to make that clear, both by saying he's a leftist and regularly trashing right-wing and centrist ideas. Which is a bit of a problem. Some of Krugman's best ideas--extending federal aid to state governments to allow for the reversal of budget cuts made over the last several years, for example--are weakened because you know, as a reader, that Krugman is ignoring 2/3 of the political spectrum. It's hard to imagine either political party agreeing to give the states a blank check for 500 billion or so dollars. The reason for this, of course, is that the state governments are by and large money-sucking holes. Maybe people would go for an employment program that reinstated state employees who've been laid off during the current downturn, which in Krugman's view would be the main purpose of such an aid program, but even a program that stopped there might be a tough sell for the public.

I do think agree that something must be done in terms of mortgage relief. I hadn't read the idea of increasing inflation before, but there's something intoxicating about it. If a pile of money (or a pile of debt) decreases substantially in value over time, it would ease the pain of many homeowners. But inflation might also convince people not to sit on piles of money in savings, and allow some of the money currently resting in bank accounts to be put to work in the economy (one of Krugman's central ideas is that the economy is suffereing, in part, due to too many people saving rather than spending). I think the fact that monetary policy favors zero inflation and emphasizes fairness to creditors rather than debtors probably does have something to do with creditors (banks) being sometimes indistinguishable from policy-makers and influence-peddlers.

There's a funny line midway through this, where Greenspan says that with notably rare exceptions the "invisible hand" has created stable exchange rates, interest rates, prices and wages. Krugman compares that line to another, which says that with notable exceptions, Japanese nuclear reactors have been safe from earthquakes. Ah ha!

It's interesting to note that household wealth fell by 13 trillion in 2008, which is about the amount of a year's worth of production of goods and services--I have thought about the housing crisis in similar terms, in that most people who bought into the housing market in 2005-2007 are facing a loss in the value of their homes that's about equal to the amount of a year's salary (or more). In both cases, it's big hit to take.

I personally would have liked to know a little bit more about the opposition to some of these ideas, in order to find a middle ground that still feels like bold action. I was struck by one idea when reading this--Krugman's thesis, basically, is that more government spending what we need to get the economy rolling--and aren't tax cuts basically the same as government spending? What if the government simply cut taxes for the bottom 99 percent? This way, you have more spending, lower taxes, and the top one percent paying a larger piece of the pie. Seems like both parties could get at least part of what they want in that scenario. You won't find that idea or anything like it in this book though, because this is basically a polemic of the left.

Still, I agree with Krugman's idea that the important thing is to do something. I also agree that success breeds success, and that voters want results. I agree that political opposition to these ideas isn't as strong as Obama's administration might think it is.

I laughed out loud only once while reading this, at a point toward the end where Krugman says that Romney may not believe a word he's saying at this point in the campaign, and may govern from the left of center on economic issues. This exact thought had occurred to me. It also occurred to me that Obama was elected at least in part because many voters (myself included) believed that he would move to the left once he was done campaigning (especially w/r/t the wars, human rights, the environment, etc). It really says something about the current political climate that we are electing politicians based on the hope that they believe things that they can't say for fear of backlash from their respective political parties. I wonder if Krugman has had the "Kansas epiphany" w/r/t Obama yet. But that is the subject for another book review.

I received this book as part of a Goodreads FirstReads promotion.
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May 02, 2012 Jorge rated it 4 of 5 stars

Shelves: politics-economics

End This Depression Now! By Paul Krugman

“End This Depression Now!” is the plea that makes the persuasive case that we indeed have the knowledge and tools to get out this depression. Nobel prize-winning economist and best-selling author Paul Krugman provides his usual intellectual clarity and sound suggestions on how best to end this economic depression. This is a proactive book, the author lays out what needs to be done and how it can be done while acknowledging the opposition to his arguments....more

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Sep 03, 2012 Seamus Enright rated it 4 of 5 stars

It's Keynesianism on acid...Even though I'm not an Economist myself I lean towards Keynesianism myself...it's extremists like him that give the rest of us a bad name.

I agree that the problems in the World were caused by the economy overheating as a result of excessive liquidity and lack of regulation...where I disagree is that we can ever have the growth we had in the 60 years after World War II again...even though there is a lot of employment in Green Energy we really need to start downsizing.....more

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May 04, 2012 Hadrian rated it 4 of 5 stars

Shelves: economics-finance-business, nonfiction, politics-and-foreign-policy

This is a very incisive summary of the current economic crisis. Oh, if only Krug or Robert Reich were in the Cabinet!

It's hard for me to summarize Krugman's already tight lines of reasoning even further, but here goes.

-The major trend of economic policy of the past thirty years, from Reaganomics to the Bush tax cuts, has been a catastrophe.
-The present hesitance of both borrowers and creditors, leads to decreased demand.
-The deregulation of the financial markets, most notably Glass-Steagall, has...more

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May 08, 2012 Basil rated it 4 of 5 stars

I can't say that I know much about economics—I keep up with economic news, but I've never taken a course on the subject.

However, at least as a layman, Krugman's arguments about how we got here and how to get out are right on target. It's clear that the main problems in the economy are caused by insufficient demand, and that the government is the only entity large enough to create the demand necessary to get the ball moving again. Saying that now, of all times, is the time to start talking about...more

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Jul 28, 2012 Mark D. rated it 4 of 5 stars

Paul Krugman presents a straightforward explanation of the world economy (with a particular focus on the US) and the origins of the current depression. Krugman stresses how quickly we could end this depression if only our leaders could find the "intellectual clarity and political will" to take the necessary actions. The author draws on historical and contemporary sources and logically lays out the argument for stimulative and expansionary economic and monetary policies.

The book is extremely well...more

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