Now comes Judge Richard Posner, claiming it is just that, a Depression.
This comes about in the Becker-Posner Blog, which this week is about China and our trade imbalance and financial reserve imbalances with that nation.
First up is Professor Gary Becker talking to the issue of China and trade. In his response to Professor Becker, Judge Richard Posner makes the point that our economic crisis is a depression.
One reason that we are in a depression and not merely the "severe recession" that is the preferred euphemism is that, because of those deficits, we cannot spend our way out of the depression without increasing the national debt to a point at which either horrendous inflation or huge tax increases will be required to pay it down.Maybe we are in a Depression after all. Worse, maybe Keynes doesn't hold the key to the exit.
Regards  -- Cliff