Sorry Friends–Krugman Has Always Been Right

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.

via Falling Wages – NYTimes.com.

About Stephen E. McGaughey
International consultant in economic development programs and projects

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