What Krugman suspected – that high unemployment just doesn’t matter that much anymore to our political leaders, and in fact is the new normal – appears to be just what Tim Geithner is willing to settle for.
Paul Krugman was saying what a lot of people were already thinking on Sunday, when he described
a sick feeling … that a once-unthinkable level of economic distress is in the process of becoming the new normal…. I worry that those in power, rather than taking responsibility for job creation, will soon declare that high unemployment is ‘structural,’ a permanent part of the economic landscape — and that by condemning large numbers of Americans to long-term joblessness, they’ll turn that excuse into dismal reality.
Reading between the lines just a little bit, this is the scenario Treasury Secretary Tim Geithner laid out in Krugman’s newspaper, the New York Times, just two days later. Continue reading I Didn’t know Krugman Could Read Geithner’s Mind