Krugman Laments Lack of Urgency on Jobs

Princeton economist (and Nobel Laureate) Paul Krugman is correct in lamenting the lack the urgency among fiscal and monetary policymakers to boost job creation.

We certainly can’t count on fiscal policy. The austerity gang may have experienced a stunning defeat in the intellectual debate, but stimulus is still a dirty word, and no deliberate job-creation program is likely soon, or ever. 

Aggressive monetary action by the Federal Reserve, something like what the Bank of Japan is now trying, might do the trick. But far from becoming more aggressive, the Fed is talking about “tapering” its efforts. This talk has already done real damage; more on that in a minute.

Unfortunately, unemployment remains too high and the pace of job creation too slow (despite being the best year since 1999)...and Congress is facing little pressure to fix it. This means, sadly, that these families will continue to needlessly suffer.