More Stimulus to Prevent Double-Dip Recession Could Cause One

In his op-ed piece in The New York Times on Sunday, Nobel Prize-winning economist Paul Krugman argued that if the Obama administration and Congress on the one hand and Fed on the other withdraw their stimulus programs, that the economy will collapse again, as it did in 1937 when FDR made similar moves, wrongly assuming the Great Depression was over. Krugman wrote "As you read the economic news, it will be important to remember, first of all, that blips -- occasional good numbers, signifying nothing -- are common even when the economy is, in fact, mired in a prolonged slump."


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