Paul Krugman: Profits Without Production

One lesson from recent economic troubles has been the usefulness of history. Just as the crisis was
unfolding, the Harvard economists Carmen Reinhart and Kenneth Rogoff — who unfortunately
became famous for their worst work — published a brilliant book with the sarcastic title “This Time
Is Different.” Their point, of course, was that there is a strong family resemblance among crises.
Indeed, historical parallels — not just to the 1930s, but to Japan in the 1990s, Britain in the 1920s,
and more — have been vital guides to the present.

Yet economies do change over time, and sometimes in fundamental ways. So what’s really different
about America in the 21st century?