Stimulus Not Big Enough to Save Us: Krugman

(NEWSER) - When the economic crisis turned terrifying last winter, Washington finally got its act together and passed a massive stimulus package. But now, writes New York Times columnist Paul Krugman, the US faces a slower but more dangerous "jobless recovery" over the next few years and an "utterly terrifying" climate crisis decades out. Faced with these long-term dangers, the government is acting like the metaphorical "boiling frog"—unaware that it's slowly dying. More»

Call for bold action on economy followed by plan that falls a long way short

(NEWSER) - Barack Obama's call for aggressive action on the economy hasn’t been backed up by a plan bold enough to do the job, Paul Krugman writes in the New York Times. Plunging levels of investment and consumer spending will leave a gap of around $2 trillion between what America produces and what it can sell—and Obama's plan only offers $775 billion to fill that hole. More»

Few surprises as president-elect introduces team

(NEWSER) - When it comes to the economy, Barack Obama says his work begins “right now.” Obama introduced his economic team today; as expected, he designated Timothy Geithner as treasury secretary and Lawrence Summers as director of the National Economic Council. The president-elect said they would begin work immediately on a huge stimulus package, which could be signed almost immediately after his inauguration, the Hill reports. More»

Event will coincide with the release of November unemployment stats

(NEWSER) - The Obama administration will hold a much-hyped jobs summit today, bringing 130 guests—including labor leaders and a host of big-name CEOs—to brainstorm ideas for tackling unemployment. The event also just happens to coincide with the release of November’s unemployment figures, which aren’t expected to be pretty—ADP estimates that 169,000 jobs were lost last month. More»

Voter backlash is about failure to lower unemployment

(NEWSER) - Paul Krugman doesn't buy the GOP conclusion that voters Tuesday rejected the Obama agenda. The election just showed that American voters are worried about their jobs, he writes, and this time next year, with unemployment still high, Democrats will likely regret not having been bolder on the economy when they had the chance. "Voters across America are in a bad mood, largely because of the still-grim economic situation. And when voters are feeling bad, they turn on whomever currently holds office." More»