Paul Krugman writes, again, that jobs, not deficts, are the problem and that big cuts in government spending will only make the economy worse.
As the stimulus has faded out, so have hopes of strong economic recovery. Yes, there has been some job creation — but at a pace barely keeping up with population growth. The percentage of American adults with jobs, which plunged between 2007 and 2009, has barely budged since then. And the latest numbers suggest that even this modest, inadequate job growth is sputtering out.
So, as I said, we have already repeated a version of the mistake of 1937, withdrawing fiscal support much too early and perpetuating high unemployment.
TODAY’S NEWS: Slim job growth in May and the unemployment rate inched up to 9.1 percent. Drastically cut federal spending and watch it get lots worse.