Steven Conn: For thirty years inflation has not been a serious threat to the American economy, yet politicians and pundits continually fret about it. The never-ending worry about inflation is like fighting the last war rather than the current one. What’s needed today is a war on unemployment and wage stagnation, not inflation.
Robert Reich: The Fed’s decision Tuesday to keep short-term interest rates near zero is no surprise. What’s odd is its apparent decision not to boost the economy by buying hundreds of billions of bonds — despite its acknowledgment that ”the pace of recovery in output and employment has slowed in recent months,” and that prices are rising too slowly for comfort (i.e., we might be facing deflation).
Friday Feedback: Contracting More Debt and Artificially Preventing Deflation Cannot But Prolong and Worsen the Problem
Every Friday the LA Progressive features a comment that was particularly noteworthy. This week we are featuring a comment submitted by Ivan as part of the many response to Robert Reich’s “The Stimulus: How to Create Jobs Without Them All Going to Skilled Professionals and White Male Construction Workers.” Ivan writes: “The two interlinked problems [...]