Coral Gables Watch

Nearly Permanent Unemployment?

Thanks to Greg Mankiw’ Blog.  Terrible unemployment and no real changes in sight.

More On Need For Stimulus To The Economy (Stiglitz)

The remedies to the US deficit follow immediately from this diagnosis: put America back to work by stimulating the economy; end the mindless wars; rein in military and drug costs; and raise taxes, at least on the very rich. But the right will have none of this, and instead is pushing for even more tax cuts for corporations and the wealthy, together with expenditure cuts in investments and social protection that put the future of the US economy in peril and that shred what remains of the social contract. Meanwhile, the US financial sector has been lobbying hard to free itself of regulations, so that it can return to its previous, disastrously carefree, ways.

via The Ideological Crisis of Western Capitalism – Joseph E. Stiglitz – Project Syndicate.

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.