"Everyone in Washington" should be crying out, "My God, what have we done?" writes Paul Krugman in the New York Times. His reasons: The puny 2% interest rate on 10-year national bonds is proof that President Obama's deficit spending did not raise interest rates, as critics had predicted. Also, the shocking zero-increase in US jobs last month shows that disinterest in "a much-needed second round of federal stimulus" has stalled hiring.
Krugman's conclusion? Obama's upcoming jobs speech should focus on "a lot of job-creating spending on the part of the federal government," especially "to repair and upgrade the nation’s infrastructure." But the GOP will block whatever Obama proposes, says Krugman, "so I’m personally prepared to cut Mr. Obama a lot of slack on the specifics of his proposal, as long as it’s big and bold"—and gets "Washington talking again about jobs and how the government can help create them." (Read more hiring stories.)