“Nobody Understands Debt” by Paul Krugman (TIMES, 1/2/12)


     Kudos to Paul Krugman for beginning the new year by reminding us that “We need more, not less, government spending to get us out of our unemployment trap.”

     Krugman also pointed out that the conservative warning that budget deficits would “send interest rates soaring” has been wrong; therefore, are not a problem.

     Then he acknowledged that the United States in 2010 and 2011 “was in a technical (?) recovery,” (i.e., a recovery compromised  by “disastrously high unemployment”).

     All of which means the emphasis of government economic policy right now should be placed on putting people to work.  And the best way to do that would be by implementing a modern-day New Deal program like the one initiated by Franklin D. Roosevelt after the   landslide Democratic Party                  victory in the election of 1934.

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