Krugman Sees U.S. in 'Third Great Depression' By: Gene Koprowski

The U.S. economy is in the “early stages” of a depression, one which will be much more severe than the Great Depression, Nobel Prize winning economist Paul Krugman warns.

“We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression,” Krugman writes in the New York Times. 

“But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense,” he wrote in the Times.

This third depression will emerge as a result of the failure of government economic policy.