Welcome back to the starting line
Just thought i'd spoilsport last week's job numbers:
Especially now that we're nearing a return to 2008 job levels, it's easy to dismiss the past 6 years as just having "inconvenienced" some several million people for a while, but we're all better now. In fact, for many, this was a period of extreme economic hardship that devastated lives. And there is a spill-over effect even on people who didn't lose jobs for some of that period - cut hours, more work responsibilities, little or no cost of living increases. And then on top of that, the permanent economic damage shown by the chart. We are now forever 6 years behind where we should be in terms of the country's economic growth. More at Yglesias.
And the point is that this was all preventable. Here's Paul Krugman back in 2009 calculating the size of the stimulus needed to account for the economic catastrophe we had just been through, and ending with:
I see the following scenario: a weak stimulus plan, perhaps even weaker than what we're talking about now, is crafted to win those extra GOP votes. The plan limits the rise in unemployment, but things are still pretty bad, with the rate peaking at something like 9 percent and coming down only slowly. And then Mitch McConnell says "See, government spending doesn't work."
By fnord12 | May 5, 2014, 12:05 PM | Liberal Outrage