Stiglitz' analysis and conclusions are too important to simply excerpt or summarize. Read his entire piece HERE.
Until now, the Depression was the last time in American history that unemployment exceeded 8 percent four years after the onset of recession. And never in the last 60 years has economic output been barely greater, four years after a recession, than it was before the recession started. The percentage of the civilian population at work has fallen by twice as much as in any post-World War II downturn. Not surprisingly, economists have begun to reflect on the similarities and differences between our Long Slump and the Great Depression. Extracting the right lessons is not easy.
Wednesday, December 14, 2011
The roots and the depth of the Great Recession
World-class economist Joseph Stiglitz has an essential essay in Vanity Fair, in which he uses new research and insights into the causes of the Great Depression to suggest that we need a fundamental rethinking of how to tackle the current crisis: