Krugman: Here's The Giant Crash Obama Saved Us From

We, in addition to others, have accused Paul Krugman of making an argument that can’t be proven either correct or incorrect when he proposes that massive government stimulus has averted a depression that didn’t happen.

Well, he attempts to back his assertion by comparing how world industrial production performed post-1929, and today, post-2008.

NYT: “Basically, we started out with a year that matched the Great Depression, but have since pulled back a bit from the edge of the abyss.”

Two crises

There are obviously a lot of factors at play in both economic scenarios that may have affected industrial production, and it remains to be seen how sustainable the industrial production rebound is, particularly in the U.S..

We also need to consider the cost we’ve burdened future generations with. Yet this chart provides a good starting point for discussion. You can find the original here.

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