How bad is our economy? Have we been struggling long enough to call it a depression? Nobel-prize winning economist and New York Times columnist Paul Krugman says yes.
“It’s an awful situation,” he tells “Starting Point” anchor Soledad O’Brien today. While it may not quite be as bad as the 1930s, it’s “pretty terrible” he says. “That was the Great Depression. This is the lesser one. It's an awful situation and importantly it's a time when usual rules don't apply to the economy.”
Krugman, author of a new book “End This Depression Now!” says the government should be putting more money into the economy and focusing less on cutting spending.
“Reverse this misguided budget cutting we’ve done these last few years,” Krugman says, “Get the spending back up there. Get the economy back on track, then we can talk about deficits after that.”
Watch more clips from the interview to see the panel challenge Krugman’s view on the looming debt crisis and the best time for the government to implement spending cuts.