Krugman: This groupthink on the deficit sounds like the rush to invade Iraq; Insanity

[Ichingcarpenter]

Falling Wages

Ugh. That was a seriously ugly jobs report (pdf). Almost no job creation, with slow private-sector growth offset by falling public-sector employment; a falling employment-population ratio; and (I don’t know how many people have picked this up), an actual decline in wages, albeit a small one.

Let me emphasize that last point. My bottom line on the inflation-deflation issue has always been to look at wages; you can’t have a wage-price spiral if wages ain’t spiraling. And they aren’t, to say the least.

It’s important to realize, by the way, that stagnant wages are NOT good for recovery; all they do is ensure that the burden of debt relative to income remains high, keeping demand and employment down.

The situation cries out for aggressively expansionary monetary and fiscal policy. Instead, however, all the political push is in the opposite direction.

http://krugman.blogs.nytimes.com/2011/07/08/falling-wages/


Just click the next post at the bottom of the article titled

Charting Our Policy Insanity and continue to the next.

[msongs]

1. repubs have Obama on the run nt

[Ichingcarpenter]

2. It's starting to remind me of the run-up to the Iraq War.

The discussion is completely detached from reality.
I see a huge double dip coming and I an't talking about ice cream

[bemildred]

3. "Let them eat cake!" nt

[chill_wind]

4. K & R. n/t