A: Feeling down in the dumps over the terrible economy? Well, Paul Krugman is here to cheer you up. Or, wait, no, make you feel much worse. Bottom line, Kruggers?
The bottom line is that there has been basically no wealth creation at all since the turn of the millennium: the net worth of the average American household, adjusted for inflation, is lower now than it was in 2001.Good times. Good. Times. Fear not, though, there's still hope. For one thing, the Cheney household is doing better than ever. Plus:
If you want to see what it really takes to boot the economy out of a debt trap, look at the large public works program, otherwise known as World War II, that ended the Great Depression. The war didn’t just lead to full employment. It also led to rapidly rising incomes and substantial inflation, all with virtually no borrowing by the private sector. By 1945 the government’s debt had soared, but the ratio of private-sector debt to G.D.P. was only half what it had been in 1940. And this low level of private debt helped set the stage for the great postwar boom.Hurray! Now all we have to do is go to war with Germany, beat them, appease them, wait for them to create a new Hitler, and then beat them again, with a little bit of Japan nuking for good measure.via] and all my doubts went right out the window.