In the 1930s, as the world plunged into depression, there were two political factions that insisted nothing could be done: Marxists, who saw the depression as the death knell of capitalism, and laissez-faire economists, who believed that the only way to revive the economy was to let the depression takes its course like a bad storm at sea.
Germany vs. Spain. Texas vs. Florida. These aren’t predictions for the next World Cup final or BCS title game but rather examples of the regional divergence in economic performance and fiscal outlook described by Gillian Tett in the Financial Times last Friday. She argues that while international attention has been focused on the divergence of the Eurozone (between countries with strong, growing economies and those without), the U.S.
WSJ's Wessel: Taxing the rich more wouldn't hamper economy. The ratio of oil to natural gas prices is 4X the historical average. Krugman's essay on the failure of economics. Reactions from DeLong and Kling. Gillian Tett: Why did more bankers go to prison during S&L crisis than now? Why demand for healthcare shouldn't be suppressed. How can we prevent students from taking on too much debt?