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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPaul Krugman details how the GOP may pull the plug while the economy is 'still on life support'
Written by Alex Henderson June 9, 2020
Liberal economist Paul Krugman delivers some good news and some bad news in his New York Times column this week. The good news: the U.S. jobs report for May released by the Bureau of Labor Statistics on June 5 was much better than expected. The bad news: the U.S. economy, battered by the coronavirus pandemic, is still on life support and Republicans in Congress will want to turn that life support off.
A good jobs report may be bad for future policy, Krugman warns. Why? Because the U.S. economy is still very much on life support. And a bit of good news is all too likely to encourage the usual suspects to end that life support too soon, with dire effects just a few months from now.
During the pandemic, Krugman has been stressing the need for economic stimulus and slamming Republicans he believes are weak in that area, such as Senate Majority Leader Mitch McConnell. And the fact that the BLS figures released on June 5 were better than expected, argued Krugman, doesnt mean that stimulus should be discontinued or that the federal government shouldnt be helping unemployed workers, state governments or small businesses that are struggling.
So far, employment numbers in this time of COVID-19 look like a fishhook: a huge decline followed by a much smaller upturn, Krugman explains. Unemployment is still higher than it was for most of the Great Depression. And while unemployment over all fell in May, it rose slightly for black workers.
https://www.alternet.org/2020/06/paul-krugman-details-how-the-gop-may-pull-the-plug-while-the-economy-is-still-on-life-support/
-snip-
The lesson to be learned from the better-than-expected jobs report, according to Krugman, is that emergency aid passed by Congress in March largely at Democrats insistence has worked.
This safety net alleviated hardship while allowing the unemployed to maintain spending and encouraging businesses to maintain their payrolls, Krugman observes. And unless Congress and the White House act, that safety net will be yanked away by August . The Paycheck Protection Program, which offers small businesses loans that can be converted into grants if theyre used to maintain payroll, is already out of money.
Republicans in Congress, Krugman laments, fail to realize that the BLS figures released on June 5 make a strong case for more economic stimulus not less.
Were facing probable disaster in the near future unless Congress acts, Krugman warns. But heres the thing: Republicans just hate helping the unemployed, hate aiding states in fact, hate any kind of disaster response other than tax cuts. And the uptick in jobs gives them an excuse to indulge their hatred.
an excuse to "indulge there hatred"............
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Paul Krugman details how the GOP may pull the plug while the economy is 'still on life support' (Original Post)
turbinetree
Jun 2020
OP
'The good jobs report is old, out-dated news' - we're looking a just 16%, or Forbes 20%
empedocles
Jun 2020
#2
Historic NY
(37,452 posts)1. There will be many places that never rehire....
the pandemic will be the excuse but it actually the saving they will bank.
ProfessorGAC
(65,134 posts)3. There Are Businesses That Will Never Reopen
Absent some new buyer in the relatively distant future, there are jobs that simply no longer exist.
There is no recovery from job losses due to permanent shuttering.
So, combined with your concern, it will take years to get employment up to where it was.
7 years of Obama success blown up by the incompetence of a guy now bragging about unemployment numbers more than 4x what it was on election day 2016.
Buffoon!
empedocles
(15,751 posts)2. 'The good jobs report is old, out-dated news' - we're looking a just 16%, or Forbes 20%
gulliver
(13,186 posts)4. Republicans may or may not decide to start austerity before the election.
But after it, if they have any power whatsoever, they'll pull the rug out from under anyone who earns a paycheck for a living. I don't care what they say. Everyone knows Republicans by now.