Paul Krugman
Nobel laureate Paul Krugman delivers a blistering critique of the policy failures following the 2008 financial crisis and offers a clear, urgent roadmap to recovery. He argues that the solution to mass unemployment is not belt-tightening, but rather a bold return to government spending.
The central economic problem is a severe lack of aggregate demand that leaves workers willing to work but without jobs to fill.
Policymakers made a catastrophic error by pivoting to austerity and deficit reduction instead of sustaining necessary stimulus measures.
Historical evidence from the New Deal and World War II demonstrates that large-scale government spending is highly effective at ending depressions.