Free Republic

How goes the state of the union? Well, the state of the economy remains terrible. Three years after President Obama’s inauguration and two and a half years since the official end of the recession, unemployment remains painfully high. But there are reasons to think that we’re finally on the (slow) road to better times. And we wouldn’t be on that road if Mr. Obama had given in to Republican demands that he slash spending, or the Federal Reserve had given in to Republican demands that it tighten money. Why am I letting a bit of optimism break through the clouds?...

“The boom, not the slump, is the right time for austerity at the Treasury.” So declared John Maynard Keynes in 1937, even as F.D.R. was about to prove him right by trying to balance the budget too soon, sending the United States economy — which had been steadily recovering up to that point — into a severe recession. Slashing government spending in a depressed economy depresses the economy further; austerity should wait until a strong recovery is well under way. Unfortunately, in late 2010 and early 2011, politicians and policy makers in much of the Western world believed that they...

Krugman: Here Are 3 Charts For Anyone Who Thinks The Economy Isn't Terrible Gus Lubin Jul. 29, 2010, 8:23 AM Paul Krugman says he's heard a lot of people saying he's exaggerating America's economic plight. He doesn't know who these people are, and neither do we. The NYT columnist posts three charts as proof things are worse than anytime since the Depression. First, rate of decline in employment: Second, unemployment rate -- noting the higher baseline for unemployment leading up to the 1982 spike: Third, duration of unemployment: Now check out 19 Signs The Economy Is Worse Than Ever In...