Krugman: "I’d say that the Fed’s policy is to do nothing about unemployment."

Paul Krugman:

Last month more than 14 million Americans were unemployed by the official definition — that is, seeking work but unable to find it. Millions more were stuck in part-time work because they couldn’t find full-time jobs. And we’re not talking about temporary hardship. Long-term unemployment, once rare in this country, has become all too normal: More than four million Americans have been out of work for a year or more.

Given this dismal picture, you might have expected unemployment, and what to do about it, to have been a major focus of Wednesday’s press conference with Ben Bernanke, the chairman of the Federal Reserve. And it should have been. But it wasn’t.
(SNIP)
I’d say that the Fed’s policy is to do nothing about unemployment because Ron Paul is now the chairman of the House subcommittee on monetary policy.

So much for the Fed’s independence. And so much for the future of America’s increasingly desperate jobless. MORE...