Economics professor Brad Delong: On Not Making The Same Mistakes We Made In The Great Depression.
That ought to keep your head explodin' for a while... better than sitting there thinking gloomily about the fact that jobless claims are at a 26 year high. In December, no less, when everybody is supposed to be staffing up for the Christmas shopping season!
And oh yeah, the tighty righty's favorite answer to every economics issue (economy good? Tax cuts! Economy bad? tax cuts!) did not work. And cannot work in a deflationary environment, because they just go to pay off creditors. A deflationary environment is a mechanism for transferring wealth from the working class (you and me) to the creditor class (the oligarchs who rule us). That's how it worked in the Great Depression -- the oligarchs got filthy rich by repossessing the homes of people and then buying them at auction for pennies on the dollar -- and that's how it still works today. The answer is a) return the monetary policy to being an *inflationary* policy, which allows merchants to sell goods for more than what they paid for them, and b) jobs, jobs, jobs, so that people can consume and thus stimulate economic activity. Anything else is just repeating the mistakes of the Great Depression.
-- Badtux the Economics Penguin