02/06/2012 08:46 am ET

Paul Krugman: Jobs Report Optimism May Prove 'Self-Defeating'

In a better world -- specifically, a world with a better policy elite -- a good jobs report would be cause for unalloyed celebration. In the world we actually inhabit, however, every silver lining comes with a cloud. Friday's report was, in fact, much better than expected, and has made many people, myself included, more optimistic. But there’s a real danger that this optimism will be self-defeating, because it will encourage and empower the purge-and-liquidate crowd.

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