I agree absolutely with Princeton University Economist, Paul Krugman, except on the cause of and solution for the collapse and inevitable (your children) “long depression.”
Krugman (as Nobel awarded defender of the Status Quo) cannot publicly embrace reality (but I suspect secretly acknowledges it).
- Fiscal profligacy and crony capitalism (banks, energy and technology companies) became so egregious in the "Reagan inspired" dimwit optimism era (1980-2007) as to essentially undermine the modern capitalist system. Broken systems don't fix themselves. They generally remain broken until the “world” changes -- catch 22.
- Invariably, the status quo (herd) eventually (finally) does the right thing, policy-wise, unfortunately at the worst possible time – nature of the beast.
In short, I’m sure Mr. Krugman (secretly) knows there is no "policy fix" to prevent/ameliorate capitalist economic depression (declining GDP), in “classical” economic terms. Only time and real social change (working off/defaulting on excess debt, reducing consumption, population, etc. resulting from previous dimwit optimism) can fix this current, post-crash “malaise” (see Jimmy Carter).
The only other remotely conceivable “fix” involves discovering some (more out than input) new energy/technology that instantaneously renders every human on the planet some portion “richer” (under the criteria of our present, regressive, hierarchical, all-too-human capitalism that progressives have been trying 400 years to replace or improve with no real progress).