Paul Krugman debunks the myths of the failure of the stimulus and why the job numbers last Friday sucked: It was too little, too late, and too many pundits in the soup.
The economy isn’t fixing itself. Nor are there real obstacles to government action: both the bond vigilantes and structural unemployment exist only in the imaginations of pundits. And if stimulus seems to have failed, it’s because it was never actually tried.
Listening to what supposedly serious people say about the economy, you’d think the problem was “no, we can’t.” But the reality is “no, we won’t.” And every pundit who reinforces that destructive passivity is part of the problem.
There is also the fact that there were a number of people in positions of power who actively did anything they could to undermine any effort to repair the damage of the recession. That’s not some wild-eyed conspiracy theory; it’s a fact. All you have to do is turn on C-SPAN.