Using the "D" Word

Paul Krugman, columnist for the New York Times and an economist, invoked the "D" word - Depression - in a recent column. He is pushing for a robust and immediate stimulus package to prevent the recession from slipping into a depression.

He suggests, correctly I think, that the only hope of reversing a very bad situation is a massive infusion of government spending, but unlike the process to date, this package needs to focus on creating jobs, extending unemployment benefits and really fixing the housing problem from the consumer's perspective.

Those who are wringing their hands about another New Deal conveniently forget that it was only massive government spending that pulled us out of the Great Depression of some 80 years ago.

Not fixing the problem immediately will be much more costly than any stimulus plan the Obama Administration has suggested.