For very long Paul Krugman, the Nobel laureate columnist of New York Times has been insisting that the current economic problem in the US is due to persistent unemployment rate. He has been critical of Federal Reserve and its chairman Ben Bernanke because Krugman says that they are so pre-occupied with the fear of inflation and Fed’s credibility perception that they are letting unemployment linger on for too long. Similarly, he is critical of President Obama and the Congress for their infatuation with deficit reduction than with growth policies. To drive his point home, Krugman uses the lost decade of Japan as a warning sign:
For all its woes, Japan has never experienced the kind of employment collapse we’ve suffered. That’s the sense in which we’re doing far worse than the Japanese ever did.