This is a Full Societal Breakdown

by MN Gordon
Economic Prism

This week’s standard refrain was one of pessimism. The quick return to economic health mantra that was popular not long ago has disappeared faster than you can say lickety-split. But there was one notable outlier this week. In fact, one leading economist stepped forward with assurances that renewed prosperity lays just ahead.

On Wednesday, Nobel prize economist Paul Krugman looked up from his liquidity trap graphs long enough to tell Noah Smith at Bloomberg that the 1979-82 economic slump “would suggest fast recovery once the virus is contained. I don’t see the case for a multiyear depression.”

This sounds great and all. A fast recovery would end a lot of financial pain and suffering. Still, we seem to think the damage that’s been done by the government lockdown will have long-term consequences.

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