Let me see if I got this straight: Paul Krugman (“What if this is a permanent slump?” Nov. 19) says we might have been in a long-term slump since the ’80s, broken only by bubbles like the housing bubble that burst in ’06. So his solution is for government to continue huge budget deficits. In other words, a financial bubble created by individuals or corporations is bad, but a bubble engineered by the government is perfectly fine, according to Krugman.
I think the real answer is much deeper. The cause is not slow population growth or trade deficits. These are also symptoms, not causes. The real cause is moral breakdown at all levels, resulting in everyone looking out only for their own narrow self-interest. This is the cause of family breakdown and the greed that breeds bubbles.