Monday, January 4, 2010

Krugman on What's Next in the Economic Recovery and Why It Probably Won't be Enough

I don't know, I just don't know...but this guy is usually right.

The Obama fiscal stimulus plan is expected to have its peak effect on G.D.P. and jobs around the middle of this year, then start fading out. That’s far too early: why withdraw support in the face of continuing mass unemployment? Congress should have enacted a second round of stimulus months ago, when it became clear that the slump was going to be deeper and longer than originally expected. But nothing was done — and the illusory good numbers we’re about to see will probably head off any further possibility of action.

No comments: