Krugman concerned that today's good news "deflates the sense of urgency"

[ProSense]

December 4, 2009

Good news is bad news

Today’s unemployment report was good news. But in a real sense good news is bad news, because this month’s not-too-bad number deflates the sense of urgency.

The fact remains that realistic projections show unemployment staying disastrously high for many years. The chart above is from the minutes of the Fed’s Open Market Committee. Unemployment above 8 percent in the fourth quarter of 2011; above 7 percent in the fourth quarter of 2012.

And what are we going to do about it? The de facto consensus is, not much — that we can’t and/or shouldn’t take any significant further action.

It’s a tragedy, wrapped in a weird complacency.

[Kurt_and_Hunter]

1. He is quite right

The powers that be are keen for any excuse to do little or nothing.

A 0.2% decline today will, in policy terms, probably result in more than 0.02% later if it offers false reassurance.


That said, it's nice that a few more people have incomes.

[Better Today]

2. Wow, it is good for my ego to see someone of public importance

reporting on what I've been concerned about. Now I don't feel so much like I'm just being overly-negative, realistic feels much better.

[Cant trust em]

3. This seems like weird logic.

Let's hope the situation stays grim so we can take action to make those improvements.

[paulk]

4. the situation IS staying grim

A .2 % drop in unemployment really doesn't mean we're out of the woods, although there are forces in DC who will portray it that way. Let's hope Obama isn't listening to them, although his recent comments on balancing the budget aren't too encouraging...

[ProSense]

5. It's Krugman.

It's one thing to stress that the sense of urgency needs to remain high. It's quite another thing to believe that signs of improvement at this point will lessen the urgency. I just don't see it.

Krugman, in his own way, is stressing that more needs to be done and now is not the time to let up.

[Cha]

9. It certainly is his own inimitable way..

thanks for the translation, PS. Oy Vey.

[DrToast]

6. It deflates his "double dip" nonsense from the other day.

:toast:

[Kurt_and_Hunter]

8. Oh, please do explain what makes it nonsense. Thanks in advance!

[girl gone mad]

10. Not even a little bit.

[Arctic Dave]

7. This is good news, however, I think we are focusing on any little thing that makes us feel better

for the moment and no on the long term. Very little has changed since we got in this mess. We really need to focus on staying out of this trap next time.

[Life Long Dem]

11. Forget about the real data let's not lose sight of the realistic projections.

Got it?

[DailyGrind51]

12. Things really didn't get bad enough?

I'm beginning to regret that the economy didn't REALLY collapse, maybe then everyone would see "the urgency of NOW"?

[smalll]

13. Well, Krugman, thanks for your "concern."

:eyes:

[impik]

14. Not if you watch Obama's weekly address:

http://www.youtube.com/user/whitehouse#p/u/1/PbRbBqsAqt4

As urgent as always.