Unemployment

by YankeeJim | May 31, 2011 at 05:07 am

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What’s the fix?

Krugman has some actionable suggestions, though what is really needed to reengineer the USA economy is to recognize the severity of its brokenness. That is, the USA needs a complete overhaul beginning with sources of energy and energy production and attention to making manufacturing America the world’s best source for superior products at the best value.

“There's plenty we could do to curb unemployment, writes Paul Krugman: "Once you realize that the overhang of private debt is the problem, you realize that there are a number of things that could be done about it. For example, we could have W.P.A.-type programs putting the unemployed to work doing useful things like repairing roads -- which would also, by raising incomes, make it easier for households to pay down debt. We could have a serious program of mortgage modification, reducing the debts of troubled homeowners. We could try to get inflation back up to the 4 percent rate that prevailed during Ronald Reagan’s second term, which would help to reduce the real burden of debt."”