A second Great Depression is still possible

The stock market's hitting 10,000 again. Politicians and bankers, anxious for recovery (for votes & bonuses), are claiming victory and saying the recovery is on.  I say not so fast.  Maybe we recover, but we've been credit-aholics.  Like a recovering alcoholic, relapse is a very real danger.  As Palley points out below, the econometric models … Continue reading A second Great Depression is still possible

The History of Modern Macroeconomics

A good piece from Brad Delong.  At the core, modern macroeconomic theory is relatively empty and vacuous when it comes to the major crises: last year's melt-down, the Great Depression, the many bubbles, etc.  I have to agree with Brad's conclusion that macro theory must re-connect with economic history ( I would suggest micro theory … Continue reading The History of Modern Macroeconomics

The Gota Program: The Real History of “Socialism”

Germany was the first major industrialized country to go "socialist" with a social welfare regime.  Brad Delong links us to the original platform of the German socialists, the prototype of most of the 20th century European efforts. More after the jump. The Gotha Program of 1875 Full text of "Gotha Programme": I. Labor is the … Continue reading The Gota Program: The Real History of “Socialism”

Dow at 10,000 signals recovery. Or not…

Popular media like to point to the stock market as a real-time measure of the health of the economy. They particularly like the Dow Industrials average.  It makes quick, easy news for lazy journalists.  Occasionally they do it right, but it's rare.  CNN gets it right here: Don't trust Dow 10,000 The stock market is … Continue reading Dow at 10,000 signals recovery. Or not…