Commentary on Political Economy

Friday 1 June 2012

Krugman and "the Capitalistic Use of the Crisis"

The big question here is whether the evident failure of austerity to produce an economic recovery will lead to a “Plan B.” Maybe. But my guess is that even if such a plan is announced, it won’t amount to much. For economic recovery was never the point; the drive for austerity was about using the crisis, not solving it. And it still is.
- Paul Krugman linked here:

Friends will remember that our strident criticism of Krugman's analysis of the Great Financial Crisis and the ensuing Recession (now resembling more a Depression) was that he failed to understand what we called "the capitalistic use of the crisis". Finally today Krugman has agreed with us! (Please search 'Krugman' entries on this Blog using the search facility provided in the top corner.) Of course, we are now concentrating on other matters, but it is gratifying nevertheless that Krugman has finally seen the light! Cheers.

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