While I don't claim expertise to the level of Nobel laureate Dr Krugman, or even to Olivier Blanchard (whom Krugman quotes), the superficial evidence of initial measures taken during the Great Depression-- basically, austerity, tax cuts for the rich and deregulation-- followed by the successful measures later-- expansion of public works spending, and sadly, defense spending-- indicate that the austerity measures being put in place in Europe and contemplated in America simply will not work and not only will not work, but will actually trigger a worsening economic picture in 2012.
The Mayans may have had it right. They may just have missed that this won't be a physical armageddon, but a fiscal one.
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