Summer of Our Discontent

Krugman: "For the last few months there has been a running debate about the U.S. economy, more or less like this:

"American families: "We're not doing very well."

"Washington officials: "You're wrong - you're doing great. Here, look at these statistics!"

"You may ask where economic growth is going, if it isn't showing up in wages. That's easy to answer: it's going to corporate profits, to rising health care costs and to a surge in the salaries and other compensation of executives. (Forbes reports that the combined compensation of the chief executives of America's 500 largest companies rose 54 percent last year.)"

"The bottom line, then, is that most Americans have good reason to feel unhappy about the economy, whatever Washington's favorite statistics may say. This is an economic expansion that hasn't trickled down; many people are worse off than they were a year ago. And it will take more than a revamped administration sales pitch to make people feel better." [NYT]