Paul Krugman: The Obama Recovery

[babylonsister]

http://www.nytimes.com/2014/12/29/opinion/paul-krugman-the-obama-recovery.html?smid=fb-nytimes&smtyp=cur&bicmp=AD&bicmlukp=WT.mc_id&bicmst=1409232722000&bicmet=1419773522000&_r=1

The Obama Recovery

DEC. 28, 2014
Paul Krugman

snip//


You know the spiel: that the U.S. economy is ailing because Obamacare is a job-killer and the president is a redistributionist, that Mr. Obama’s anti-business speeches (he hasn’t actually made any, but never mind) have hurt entrepreneurs’ feelings, inducing them to take their marbles and go home.

This story line never made much sense. The truth is that the private sector has done surprisingly well under Mr. Obama, adding 6.7 million jobs since he took office, compared with just 3.1 million at this point under President George W. Bush. Corporate profits have soared, as have stock prices. What held us back was unprecedented public-sector austerity: At this point in the Bush years, government employment was up by 1.2 million, but under Mr. Obama it’s down by 600,000. Sure enough, now that this de facto austerity is easing, the economy is perking up.

And what this bounce tells you is that the alleged faults of Obamanomics had nothing to do with the pain we were feeling. We weren’t hurting because we were sick; we were hurting because we kept hitting ourselves with that baseball bat, and we’re feeling a lot better now that we’ve stopped.

Will this improvement in our condition continue? Britain’s government has declared its intention to pick up the baseball bat again — to engage in further austerity, which does not bode well. But here the picture looks brighter. Households are in much better financial shape than they were a few years ago; there’s probably still a lot of pent-up demand, especially for housing. And falling oil prices will be good for most of the country, although some regions — especially Texas — may take a hit.

So I’m fairly optimistic about 2015, and probably beyond, as long as we avoid any more self-inflicted damage. Let’s just leave that baseball bat lying on the ground, O.K.?

[CTyankee]

1. reading his column in the NYT first thing in the morning is a bit like having

chocolate cake for breakfast. It is to be savored and deeply enjoyed...

[Cha]

2. Thank you Paul Krugman! mahalo babylonsistah

[BumRushDaShow]

3. K&R

All the commentary that I have heard or read over the past week now points to wage lag as the final holdout (which ties into employment as well).

[Andy823]

4. Wages do need to go up

Sadly now that republicans will be in control of the House and the Senate, that is not likely to happen on a national level. The best way to solve this problem is at the state levels. Those living in low minimum wage states need to get out and protest for higher wages, and do whatever it takes to get a higher minimum wage on the ballots for their next election. If they get it on the ballot it will pass, just like it has in other states where the voters got a chance to express their view on this.

[Adrahil]

6. Yes...

Typically as the labor market tightens, wages will increase, but with the Repugs driving the insanity bus, it'll be hard to say what will happen. I haven't had a raise in 2 years now, largely because of government rules on contractor wages.

[arely staircase]

5. recommended nt

[Gothmog]

7. the GOP really hates to talk about the Obama recovery