Defining Prosperity Down

There is growing evidence that our governing elite just doesn’t care about the prospects of American workers — that a once-unthinkable level of economic distress is in the process of becoming the new normal.

This looks rather inevitable to me. Krugman has been making the point that the Republicans will allow no second stimulus for some months. Our exit from the trap of deflation will have to wait at least for the next Democratic super-majority. Maybe after November.

http://krugman.blogs.nytimes.com/2010/08/01/comparative-disinflations/