Our current economic crisis has revived economic and political discussions about the Great Depression. One reader wrote to me that Google citations for both the “Great Depression” and the “New Deal” have increased by several million since just last year. And while our current crisis remains far milder than the Depression, many nevertheless compare the two episodes, particularly when it comes to discussions about what the government should–or should not–do to promote economic recovery. And comparisons between today and the Great Depression will not end soon, as our crisis continues, and as some have called for a second round of federal spending to promote recovery.
A number of commentators and some in Congress have cited some of my research on the New Deal to caution against large-scale government programs to spur recovery, while research by other economists, including Dr. Christina Romer, chair of President Obama’s Council of Economic Advisers, is cited by others in Congress for the need for large-scale stimulus programs. (Both Dr. Romer and I presented our views during recent testimony before the U.S. Senate Banking Committee. Hers can be found here and mine here. )
Why Are Economists Divided About the Depression? – Lee Ohanian, Forbes
