Thursday, November 24, 2016

Deflationary policy, or "Mom, they're nuts!" part II

We have here a Krugman post titled, "Why is deflation bad?"

The short-short summary is: (1) it discourages investment; (2) it makes debt harder to bear; (3) it can lead to mass unemployment. If the Republicans do what they say they're going to do, a slam into depression is possible.

I wonder if the people already impoverished by 30 years of neo-liberal economics will, reject the leadership of the Trump administration, or if instead they will double down, and blame the (Jewish, Muslim, African-American) bankers.

1 comment:

The Blog Fodder said...

Ran out of NYT freebies. Damn