I'd have to agree with Krugman (absolutely no relation) on this one. The evidence is pretty clear that this isn't a structural problem, but one of political will to address long-term problems with stimulating small business, which would stimulate hiring and re-entry into the workforce. Incentivizing banks to lend to businesses to expand (no small task, given the free money available to banks, given the super low borrowing rates) would also go a long way. Alas, not much strategic thinking happening in Washington these days.