Paul Krugman: Without more stimulus, high unemployment is here to stay for a long, long time

[Amerigo Vespucci]

Krugman: Without More Stimulus, Joblessness Is Here To Stay
By Susie Madrak Monday Nov 02, 2009 2:00pm

http://crooksandliars.com/susie-madrak/krugman-without-more-stimulus-jobless



Paul Krugman explains why we can't settle for stabilizing the economy, and says unless there's a bigger economic stimulus package, high unemployment is here to stay for a long, long time:

The effects of the stimulus will build over time — it’s still likely to create or save a total of around three million jobs — but its peak impact on the growth of G.D.P. (as opposed to its level) is already behind us. Solid growth will continue only if private spending takes up the baton as the effect of the stimulus fades. And so far there’s no sign that this is happening.

So the government needs to do much more. Unfortunately, the political prospects for further action aren’t good.

What I keep hearing from Washington is one of two arguments: either (1) the stimulus has failed, unemployment is still rising, so we shouldn’t do any more, or (2) the stimulus has succeeded, G.D.P. is growing, so we don’t need to do any more. The truth, which is that the stimulus was too little of a good thing — that it helped, but it wasn’t big enough — seems to be too complicated for an era of sound-bite politics.

But can we afford to do more? We can’t afford not to.

High unemployment doesn’t just punish the economy today; it punishes the future, too. In the face of a depressed economy, businesses have slashed investment spending — both spending on plant and equipment and “intangible” investments in such things as product development and worker training. This will hurt the economy’s potential for years to come.

[Tansy_Gold]

1. And where the hell is this stimulus money gonna come from?

it's not like the wars are gonna stop any time soon and the banks are still suckin' up cash like crazy.

So where's the money comin' from, huh, Paul?



TG

[mother earth]

2. Same place the last one did, the printing press. It's time for

FDR to channel his spirit. Jobs are THE priority & this fact does not seem to be front & center. Instead we are arguing BS points on health care reform, when the only real reform would be single payer & it's not even on the table. We need action NOW, on the job front.

And Krugman is right, it's not the time to worry about debt, George made sure we will never see the light, the only thing now is to take FDR measures and that means spend for JOBS, real ones, and stop the outsourcing for the corporate CEOs to keep their outlandish salaries.

[imdjh]

3. We need a giant world war, and to lose this time to some country that will rebuild us.

[CAcyclist]

4. We tax the rich

Remember, the tax brackets used to go up to 90%. With higher taxes on the rich, not only do we pay our debts, we relieve the financial world of all that money sloshing around looking for a place to invest and creating bubbles.

[Tansy_Gold]

5. Too logical. Never work.

:sarcasm:



and :cry:

[KillCapitalism]

6. We need another CCC and WPA now.

Get the unemployed back to work and help them gain skills and they will become confident again & increase spending.