Paul Krugman: It's obvious that we are not now and have never been on the road to economic recovery

[Better Believe It]

The Wrong Worries
By PAUL KRUGMAN
August 4, 2011

In case you had any doubts, Thursday’s more than 500-point plunge in the Dow Jones industrial average and the drop in interest rates to near-record lows confirmed it: The economy isn’t recovering, and Washington has been worrying about the wrong things. It’s not just that the threat of a double-dip recession has become very real. It’s now impossible to deny the obvious, which is that we are not now and have never been on the road to recovery.

Earlier this week, the word was that the Obama administration would “pivot” to jobs now that the debt ceiling has been raised. But what that pivot would mean, as far as I can tell, was proposing some minor measures that would be more symbolic than substantive. And, at this point, that kind of proposal would just make President Obama look ridiculous.

The point is that it’s now time — long past time — to get serious about the real crisis the economy faces. The Fed needs to stop making excuses, while the president needs to come up with real job-creation proposals. And if Republicans block those proposals, he needs to make a Harry Truman-style campaign against the do-nothing G.O.P.

This might or might not work. But we already know what isn’t working: the economic policy of the past two years — and the millions of Americans who should have jobs, but don’t.

Please read the full article at:

http://www.nytimes.com/2011/08/05/opinion/the-wrong-worries.html?_r=1&ref=paulkrugman

[phantom power]

1. Obama is incapable of doing what needs to be done. He is the Hoover of Depression 2.0

[RBInMaine]

16. And you obviously need to take your meds today.

[aquart]

2. DUH!

[vi5]

3. This hits it ont he head..

"The Fed needs to stop making excuses, while the president needs to come up with real job-creation proposals. And if Republicans block those proposals, he needs to make a Harry Truman-style campaign against the do-nothing G.O.P.

This might or might not work. "

He's right. But Obama needs to try. Even if not because he actually wants it, if only because he needs to show that he is doing something and that the GOP are advocating doing nothing.

[HughBeaumont]

4. State and Local government losses are responsible for dragging the numbers down.

Electing Fascist Govs have Consequences.

[Better Believe It]

7. And what about Democratic govs and legislatures that are cutting hundreds of thousands of jobs?

Shall we leave them, Wall Street, corporate American and the President off the hook and blame the entire unemployment crisis on some right-wing Republican governors?

We have needed for nearly three years a bold federal government jobs plan.

Still waiting!

[HughBeaumont]

24. Point out . . . in my ENTIRE POST . . .where I "let them off the hook".

Point out . . . in years of journal entries, where I let Wall Street, RepubliDems, Corporate America and especially the parasitic wealthy . . . "off the hook".

Oh gee, sorry I'm not directing all vitriol to the President . .. mostly because I know it's useless considering Corporate America's iron-fisted reign on every aspect of this country. I never for once believed Obama was a progressive, even when I voted for him. I voted against Churchmerica.

We're not going to have a progressive president in this country until the old Bundists, not-so-closeted racists, poor-haters, laissez-fail lovers and American exceptionalists die or become a weak minority.

It's really bad, BAD form to call people on your side out like this. It really is. Others do it and I'm fucking sick of it.

We've needed a new WPA for about 20 years . . . at least since 1997, when blue collar (and subsequently, white collar) work went the way of free trade. The U.S. has needed an update for a decade and some change now.

And you and I BOTH know that many "Democrats" in all walks of life are anything but, especially those who close departments and buy into laissez-fail. But the facts remain that many of the layoffs happening in state and local governments are happening under the Kat$hits, Christies, Walkers and Scotts of the world.

[Better Believe It]

25. You only mentioned "Fascist Govs" which I took to mean only Republican governors and legislatures.

I'm please to learn that you didn't intend to leave others off the hook in your post.

You wrote: "But the facts remain that many of the layoffs happening in state and local governments are happening under the Kat$hits, Christies, Walkers and Scotts of the world."

True enough.

All of us know that.

However, isn't it also true that many of the layoffs are also happening under Democratic governors and legislatures?

[HughBeaumont]

26. DINO Cuomo being one of the biggest offenders . . .

http://www.timesunion.com/local/article/Budget-Division-gets-the-layoff-list-1422650.php

Here's another "Democratic" laissez failure who's turned his back on Unions -

http://www.statebudgetsolutions.org/the_williams_report/detail/state-collective-bargaining-update-july-12-2011

Seems none of them read this . . .

http://www.thedailybeast.com/newsweek/2010/02/04/lay-off-the-layoffs.html

[ej510]

27. I've been on Cuomo, this third way dem is busting unions at a rapid pace.

[DrDan]

5. spot on - it is long past time for the WH get focussed on job creation

[Vinnie From Indy]

6. Obama is worse than Hoover

Sadly, it seems he does not care at all that the American middle class is going over a cliff. He has never been playing three dimensional chess with Republicans. He has been playing three card monte with all of us.

[Name removed]

17. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Vinnie From Indy]

19. After reading your nonsense for a while, I do usually need a drink afterwards if that counts

Cheers!

[Tansy_Gold]

8. Dear Dr. Krugman

I, sir, little ol' Tansy Gold with no degree in economics, no NYT column to propagate my opinions, I, sir, have been screaming this since late November 2008. Yes, sir, ever since Obama selected Geithner and Summers and Rubin to run his economic show.

I have never, lacking the fine education and credentials of more visible and audible "economists," I have never wavered in my condemnation of the economic team or economic policies of Mr. Obama.

So why is it, Dr. Krugman the Nobel laureate, you haven't been screaming this as loud as I have?

Where the fuck you been, Paulie?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4948441#4948490



Tansy Gold

[Better Believe It]

10. Krugman was thrown under the bus a few years ago. He has hardly been quiet on this crisis.

[vi5]

11. Uh....he's been saying this for a while now....

His columns have been saying some variation on this same thing at least since the first stimulus was passed, if not even before that.

[paulk]

13. Krugman has been consistant

in his criticism of Obama's economic team and policies...

he has always maintained that the so called stimulus bill was not going to lead to a recovery

[PVnRT]

14. Huh?

Is this the first column of his you've read in two years, or what?

[Hassin Bin Sober]

22. How 'bout it. The guy has been screaming from the rooftops for two years.

[goforit]

9. Come on Paul... don't ruin our fantasy now.

[Thav]

12. The vehicle of economic recovery

stalled on the side of the road a while ago. We pushed it a little ways and were able to move a little when we got some momentum. However, the GOP said we need to take the wheels off to get it moving again, and the president agreed. Now the GOP is blaming the president for not taking out the transmission as well. All the while the economy is sitting in the back seat, sippy cup empty, waiting for some relief.

[RBInMaine]

18. Hogshit to the nth degree.

[RC]

23. I think Thav has a pretty good grip on the situation.

We should be on our way out of bu$h's recession by now, but it is slowly getting worse. Where are the jobs? Where are the jobs programs? Where is/was the stimulus/help for the people hit by this recession?

[Marblehead]

15. this is being done on purpose

TPTB are dismantling the US economy, our government is the vehicle they use. A police state will take the place of civil society.

[CrispyQ]

21. They are preparing for when oil prices escalate.

When the cost of transportation of raw & finished goods to China gets too high, the US economy will be so devastated that we will be happy to work for $5 an hour with no benefits 65 hours a week. Also, environmental protections will be gutted to ease the cost of doing business back in the US. I think this is the plan.

[Tierra_y_Libertad]

20. But, we are on the Third Way Highway to the Third World.

And, we can look forward to the new Obama/Boehner Super Catfood Committee cutting programs that produce jobs.