Apr 1, 2011

Krugman: GOP is on the wrong side of history

GOP: We must destroy employment in order to save it.

Update: Robert Reich: The Truth About the Economy that Nobody in Washington Or on Wall Street Will Admit: We’re Heading Back Toward a Double Dip. "Republicans, for their part, worry that if they tell it like it is Americans will want government to do more rather than less. They’d rather not talk about jobs and wages, and put the focus instead on deficit reduction (or spread the lie that by reducing the deficit we’ll get more jobs and higher wages)."

Paul Krugman:
In fact, across-the-board wage cuts would almost certainly reduce, not increase, employment. Why? Because while earnings would fall, debts would not, so a general fall in wages would worsen the debt problems that are, at this point, the principal obstacle to recovery.

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