“Things Are Not O.K.” by Paul Krugman (TIMES, 2/6/12)


          Thanks to Paul Krugman for the warning that the economics “policy elite” is reacting to the recent jobs report in the wrong way, mainly because it is still worried about inflation. Though the economic situation is “a bit better,” Krugman cautions us that “things are not remotely O.K..”

         So, what is to be done?

         The immediate need is a massive federal jobs program that can significantly reduce unemployment and pump money into circulation (i.e., a dose of Keynesian economics). Current Republican control of Congress is the obstacle in the way of this happening, especially since cautious Democrats are unwilling to challenge this opposition. Any urgently needed New Deal type relief has to await an electorial victory in November, a long nine months away.

          But, if “things are not remotely O.K.,” don’t the Democrats have to make a stronger effort to break the Republican intransigence? That fight in and of itself could be a decisive factor on holding their constituency. Failure to fight for a jobs program could cost the Democrats the election.

 

          A. Garavente

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