Krugman: The Wrong Worries

[amborin]

The Wrong Worries

snip

Consider one crucial measure, the ratio of employment to population. In June 2007, around 63 percent of adults were employed. In June 2009, the official end of the recession, that number was down to 59.4. As of June 2011, two years into the alleged recovery, the number was: 58.2.

snip

But the policy disaster of the past two years wasn’t just the result of G.O.P. obstructionism, which wouldn’t have been so effective if the policy elite — including at least some senior figures in the Obama administration — hadn’t agreed that deficit reduction, not job creation, should be our main priority. Nor should we let Ben Bernanke and his colleagues off the hook: The Fed has by no means done all it could, partly because it was more concerned with hypothetical inflation than with real unemployment, partly because it let itself be intimidated by the Ron Paul types.

Well, it’s time for all that to stop. Those plunging interest rates and stock prices say that the markets aren’t worried about either U.S. solvency or inflation. They’re worried about U.S. lack of growth. And they’re right, even if on Wednesday the White House press secretary chose, inexplicably, to declare that there’s no threat of a double-dip recession.

snip


http://www.nytimes.com/2011/08/05/opinion/the-wrong-worries.html?ref=global-home


eta: apologies to Paul Krugman

[Blecht]

1. It's probablynot too late to fix your subject line

and spell Krugman's name right.

[amborin]

3. horrors, thanks!

[OHdem10]

2. One of Big Banks , I believe Chase, put out a statement very

similar expressing concern over the contractionary
policies in this economy.

Austerity cuts will mean more layoffs of more workers
when we are not even producing jobs at a rate to meet
the job requirements in a normal economy. That is
not enough for new entrries into workforce in a healthy
economy.

[girl gone mad]

4. I hope Krugman is coming around to the deficit owl position.

[amborin]

6. edging toward it, perhaps?

[girl gone mad]

7. Would love to see it happen.

:)

[xchrom]

5. recommend