Megan McArdle writes:
Paul Krugman and I seem to agree that the worst part of a recession is unemployment. Losing value in your 401(k) is terrible, but not, for most people, catastrophic. Losing your business or your job, on the other hand, is wretched, particularly when there are six job hunters for every job opening.
Where we differ is that Krugman doesn’t understand why the administration has not made creating jobs a top priority. He wants transfers to state and local governments, a tax credit for increasing payrolls, and a WPA-style jobs program.
Of course, a lot of that depends upon which Krugman you talk to.