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Paul Krugman: Economics in the Crisis

PK:

Economics in the Crisis: [T]he inadequacy of policy is something that should bother economists greatly – indeed, it should make them ashamed of their profession, which is certainly how I feel. For times of crisis are when economists are most needed. If they cannot get their advice accepted in the clinch – or, worse yet, if they have no useful advice to offer – the whole enterprise of economic scholarship has failed in its most essential duty. And that is, of course, what has just happened…

The top 0.1% talk to me over lunch.

Photo 5 JPG

They say:

We are doing fine--not as great as we were doing back in 2007, but in the broad swing of things we are doing fine. But there are an awful lot of people who are not doing fine: an employment-to-population ratio below 58.5% for two years really sucks, and a Federal Reserve promising us free money for three more years indicates an economy that really sucks. You are not an un-influential voice. And you had lots of friends in the administration. You're the expert, you and your friends. Why haven't you fixed things yet?

It is a fair cop. We have failed, and failed badly. Hence the amount of time I spend in an average day staring at the wall, with the adult civilian employment-to-population ratio in my mind's eye...

FRED Graph  St Louis Fed

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