Nobel Prize Winning Economist Predicts 10% US Unemployment

2008 Nobel economics prize winner Paul Krugman said today that unless a "very effective" stimulus program is developed, the US unemployment rate could reach 10 percent.

"We could easily be looking at a world economy that is depressed until 2011 and
maybe beyond".

Krugman's modest estimate is that the US economy needs a $600 billion stimulus program on top of all the initiatives already presented by the Treasury Department. This number, which Krugman admits might have to increase, would equate to 4% of GDP. Krugman, like the new Obama administration, believes much of the plan should focus on infrastructure development "because that at least will leave us with things of value afterwards".

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