Paul Krugman: Wages and Employment, Yet Again

by Guest Sun Mar 27, 2011 6:42 pm

Oh, my. Even Matt Yglesias doesn’t quite get it.

Writing about Republican plans to raise employment by reducing it, he writes

"America is just too big to adjust primarily through the currency channel. So one possible route is nominal deflation. You cut nominal public sector salaries, lay off public sector workers, and reduce nominal transfer payments (Security Security, SNAP, etc.). This ought to drive down wages in the private sector, too, and eventually everyone is making sufficiently little money that it makes sense to start hiring more people."

http://krugman.blogs.nytimes.com/2011/03/27/wages-and-employment-yet-again/?smid=tw-NytimesKrugman&seid=auto

Krugman' editorial is regarding this article:

http://www.nationaljournal.com/economy/gop-prescription-spending-cuts-and-lower-wages-equal-more-jobs-20110325

Paul Krugman: Wages and Employment, Yet Again 3-18-120

by **Jobless_in_Ma** Sun Mar 27, 2011 6:55 pm

Excellent article.

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Paul Krugman: Wages and Employment, Yet Again

Paul Krugman: Wages and Employment, Yet Again

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