Why is the economy continuing to only plod along? [But, yes, it is indeed better than it was 4 years ago.]
Why is unemployment looming stubbornly near 8 percent?
Paul Krugman explains:
"For future reference. In a depressed economy, with the government able to borrow at very low interest rates, we should be increasing public investment — the true cost of the resources is negligible, so the rate of return is very high, not to mention the desirability of creating jobs.
Here’s what has actually happened, as measured by the sum of state, local, and federal nondefense investment:
Doing it wrong."
And, yes, Republican obstruction of all Obama's and the Democrat's jobs legislation has a lot to do with this.
According to Republicans, borrowing is bad, even though the cost of money is about as cheap as it gets. There isn't a better time to invest our infrastructure - mass transportation, water and sewer ways, the electric grid, the greening of public buildings, repairing bridges and roads, etc.
Also, according to Republicans, government-induced demand is a bad thing, although no one else (I'm looking at you, private sector) is willing to spend any money at the moment. Yes, for those of you being foreclosed upon, losing your job, already out of work, behind on your bills, you're just going to have to tough it out until the market decides you're worthy of saving.
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