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Report: Firms hired at a steady pace in January but not enough to change U.S. jobless rate - The Washington Post

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The Labor Department figures showed the U.S. added 157,000 jobs in January 2013. The unemployment rate edged slighly higher to 7.9%. Government jobs declined by 9000 in January, and the risk remains that drastic job cuts under a sequester of government spending cuts supported by some in Congress would hurt the job market.

What Krugman makes of the one trillion dollar U.S. deficit in 2012 and the alternate view of John Taylor on the U.S. deficit

08/22/2010

Krugman says $1.089 trillion to be exact for the fiscal year ending in Sept. 2012. He gives the 400-450-150 formula to understand what this means in simple terms. The debt would still be stable or declining as a ratio of GDP at $400 billion because of steady GDP growth. He cites the example of the period when debt to GDP declined from 49% to 33% because of steady growth during the Clinton years (1992-2000) even though Clinton started out in 2000 with a deficit. The $450 billion is from lower tax payments because of the 2008 economic crisis followed by recession which would be reversed with restored GDP growth. The $150 billion is from payments such as unemployment insurance, food stamps, to cushion the effects of that crisis and the recession, which would be reversed with restored economic growth.

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Report: Firms hired at a steady pace in January but not enough to change U.S. jobless rate - The Washington Post

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