Dow Plummeting and the Ramifications for American Workers
The Dow’s falling 500 points yesterday led some economists to speculate that we’re now in a “double-dip recession.” For workers, the advice is clear, if pessimistic:
Employees of entrepreneurial firms need to cling to the job they have, if they have one after the shake out from this latest crisis.
Paul Krugman’s conclusion, also cited in the Portfolio article above, is that
The economy isn’t recovering, and Washington has been worrying about the wrong things.
It’s not just that the threat of a double-dip recession has become very real. It’s now impossible to deny the obvious, which is that we are not now and have never been on the road to recovery.
Postscript: An Overview of the Debt Ceiling Negotiations
In “Washington and the Art of the Possible,” the economist Raghuram Rajan traces the debt ceiling stalemate back to two key factors: income disparity and an aging population. Rajan’s overview helps us see how the multiple constraints likely impacted the available strategies of Washington politicians across the political spectrum.