Oh, Sh*t

Op-Ed Columnist – Paul Krugman Blog – NYTimes.com


A slump, a weak recovery, a worse slump

According to one aviation specialist, those are almost always the last words on the voice track of a flight recorder recovered from a crash site.

Employment-to-population is even more important than the unemployment number, because it’s a direct measure of how many people are actually working. The unemployment rate could be zero (everybody looking for a job getting one) and if the employment-to-population ratio were way down, we’d still be screwed, all other things being equal.

We’re going to need one heck of a stimulus.

(OK, caveat: if wages and/or other benefits are going up, employment-to-population can be going down without a disaster because people and their families will still be able to eat without everyone being employed. Current economy: wages and benefits not going up.)

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