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Paul Krugman: How to create a pandemic depression

(AP file photo) In this May 9, 1938, photo, people stand in line for their portions of a federal surplus of potatoes and cabbages in Cleveland. Nearly a century later, the U.S. economy is all but shut down, and layoffs are soaring at small businesses and major industries. A devastating global recession looks inevitable. Deepening the threat, a global oil price war has erupted. Some economists foresee an economic downturn to rival the Depression.

(AP file photo) In this May 9, 1938, photo, people stand in line for their portions of a federal surplus of potatoes and cabbages in Cleveland. Nearly a century later, the U.S. economy is all but shut down, and layoffs are soaring at small businesses and major industries. A devastating global recession looks inevitable. Deepening the threat, a global oil price war has erupted. Some economists foresee an economic downturn to rival the Depression.