Krugman and the Great Depression

Thanks largely to Beezle, today’s column takes a look at Paul Krugman’s advice to president-elect Obama. In light of his analysis, it’s interesting to note that the states appear to be on the verge of widescale spending reductions combined with tax increases:

Rising unemployment and sharp drops in tax revenue are forcing states to face service cuts, hiring freezes, tax increases, or all of these.

Second verse, same as the first. Yes, the article notes that the states are “trying” to avoid raising taxes, but I wouldn’t be too optimistic about them being successful in doing so.