The interregnum of 1932-1933, the long stretch between the election and the actual transfer of power, was disastrous for the U.S. economy, at least in part because the outgoing administration had no credibility, the incoming administration had no authority and the ideological chasm between the two sides was too great to allow concerted action. And the same thing is happening now. Full Story »
Posted by Derek Hawkins
Insightful take how crucial the next two months will be in jump-starting -- or at least just stalling the free-fall of -- the U.S. economy.
The more parallels I read between 2008 and 1932, the more concern I have about possible long-lasting negative effects of the "lame-duck economy".
It is in the nature of ed-op pieces that they are too short to deal with complex problems. Still, Mr Krugman was able to at least point out the rudderless drift in economic policy caused by the power vacuum in Washington.
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