Tim Owens's Reviews > The Return of Depression Economics and the Crisis of 2008
The Return of Depression Economics and the Crisis of 2008
Tim Owens's review
Mar 07, 2016
Two generations ago we solved the economics of the great depression of the 1930 19s and many economist thought it wouldn 19t happen again. Unfortunately we still don 19t learn from our mistakes. Paul Krugman uses a baby-sitting co-op as his economic model to explain how an economy can become imbalanced as to supply and demand. The US has been ignoring the demand side of this equation.He next explains recent economic crisis in Latin America and Asia, before addressing the panic of 1907 and the great depression of the 30 19s. His explanation of what has happened recently to cause our current recession is relative to these previous crises. How we get out of this mess isn 19t rocket science since we 19ve been here before, but unfortunately our economic ignorance isn 19t allowing our political will to go back to what we already know. Most fascinating to me was the strange resemblance the 1907 panic is to today 19s problem and the development of the shadow banking system. Anyone who has taken econ 101 or paid close attention in high school econ class won 19t be surprised by the solutions offered.
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March 7, 2016 – Shelved