Krugman, Lack Of Demand, Lack Of Jobs And The Future Of America
By Martin Lowy:Sometimes even Prof. Paul Krugman is right. Here is an excerpt from his May 10 New York Times piece decrying commentators who say the U.S. jobs problem is "structural":
"We're suffering not from the teething pains of some kind of structural transition that must gradually run its course but rather from an overall lack of sufficient demand - the kind of lack that could and should be cured quickly with government programs designed to boost spending ... There is growing evidence that the corrosive effects of high unemployment will cast a shadow over the economy for many years to come ... the biggest problem facing young Americans today isn't the future burden of debt ... It is, rather, the lack of jobs, which is preventing many graduates from getting started on their working lives."
Krugman's lack of demand diagnosis is correct. We have suffered from a lack of demand forComplete Story »