The Summer of Recovery Is Over; The Fall of the Economy Is Here


Nobel Laureate Paul Krugman in a thoughtful mood.

Ring in Labor Day with this news: The U.S. shed another 54,000 jobs in August, slightly advancing the 9.6 percent unemployment rate.

Good news: Most of the jobs lost were government jobs, as the 2010 Census wound down and the Stimulus ran its benighted course. The private sector added 67,000 jobs in August.

What is to be done? Robert Reich stands on his desk and calls for—what else?—a second stimulus. Easy for him to say! Los Tiempos de Nueva York explains that nobody's interested in buying another ticket for the Royal Nonesuch:

President Obama on Monday said his administration was weighing new steps to bolster the economy, but any measures are likely to be small. His options are limited given that Congress has shown little appetite for more spending before the midterm elections in November, in which Republicans are hoping to reclaim both the Senate and the House.

And nobody will ever invest in the stock market again.

Pauly Krugnuts says this proves he was right all along.