Economy

The Ghost of 1937

It continues to haunt the economy, thanks to the austerity of the Republicans. Paul Krugman:

Between Friday’s US job report and today’s economic news from the rest of the world, it’s hard to avoid the sense that things are going bust all over. Austerity is really biting, and the global economy is sputtering.

Plus, Europe! Spreads are widening out drastically, again — and where is the ECB? Still unwilling to concede that its move toward monetary tightening was exactly the wrong thing. And Munchau is right: if all of Europe is going to be engaged in fiscal austerity, with the ECB adding to the downdraft instead of fighting it, there’s no way the peripheral countries can make it.

When the impact of the stimulus faded, the economic recovery began to slip -- and the Republican sabotage began to take shape. Again, let's hope we're all very wrong on this.