Tags: Paul Krugman | fear | economy | workers

Economist Paul Krugman: 'Too Many Americans Live in Economic Fear'

By    |   Friday, 27 December 2013 03:22 PM

The "weak and inadequate" economic recovery is causing workers to suffer, while corporations do just fine, says Nobel laureate economist Paul Krugman.

"All the burden of that [economic] weakness is being borne by workers," he wrote in The New York Times. The unemployment rate stood at 7 percent in November.

"Corporate profits plunged during the financial crisis, but quickly bounced back, and they continued to soar," Krugman said.

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"Indeed, at this point, after-tax profits are more than 60 percent higher than they were in 2007, before the recession began."

Part of that profit increase stems from companies getting more out of workers motivated by a fear of joblessness, Krugman says.

"It’s possible (although by no means certain) that corporate interests are actually doing better in a somewhat depressed economy than they would if we had full employment," he wrote.

"What’s more, I don’t think it’s too much of a stretch to suggest that this reality helps explain why our political system has turned its backs on the unemployed," he wrote.

"Too many Americans currently live in a climate of economic fear. There are many steps that we can take to end that state of affairs, but the most important is to put jobs back on the agenda."

Cutting unemployment isn’t a top political concern because the economy is A-OK for corporate America, Krugman says.

Strong economic indicators in recent weeks have made experts more enthusiastic about economic growth for 2014.

But the enthusiasm clearly isn't shared by all Americans. A new CNN/ORC poll shows that almost 70 percent rate the economy as generally in poor shape, while only 32 percent see it as strong.

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The weak and inadequate economic recovery is causing workers to suffer, while corporations do just fine, says Nobel laureate economist Paul Krugman.
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2013-22-27
Friday, 27 December 2013 03:22 PM
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