Paul Krugman Exposes Conservative Lies About Why the Economy Is Finally Recovering
Paul Krugman is guardedly optimistic that the economy is finally recovering after seven long years, although a great deal of damage has been done, some of it avoidable. In Monday's New York Times column, the economist celebrates last week's positive employment report which said the U.S. economy added well over 300,000 jobs, and that wages have increased a bit. Yay. Granted, we still have a long ways to go, and the devastation to American workers and their families cannot easily be undone. "Millions of families lost their homes, their savings, or both," Krugman writes. "Many young Americans graduated into a labor market that didn’t want their skills, and will never get back onto the career tracks they should have had."
The Great Recession was different and more far-reaching than other downturns in recent history, Krugman explains.
Some recessions are deliberately engineered to cool off an overheated, inflating economy. For example, the Fed caused the 1981-82 recession with tight-money policies that temporarily sent interest rates to almost 20 percent. And ending that recession was easy: Once the Fed decided that we had suffered enough, it relented, interest rates tumbled, and it was morning in America.