Back to the '30s?

This is worth a read: http://www.nytimes.com/2010/06/18/opinion/18krugman.html?partner=rssnyt&emc=rss

Thanks to Joe Goldberg for spotting it.

Nobel prize winning economist Paul Krugman warns that premature deficit-cutting risks repeating the same mistakes made in the 1937 when the US economy double-dipped. He highlights German austerity measures but could as easily been looking at Osborne's Emergency Budget.

He concludes:

"How bad will it be? Will it really be 1937 all over again? I don’t know. What I do know is that economic policy around the world has taken a major wrong turn, and that the odds of a prolonged slump are rising by the day."