The economy is near stall speed, no matter what Ben Bernanke says. The Obama stimulus was too small to fill the demand hole left by the Great Recession. It was poorly aimed and now is running out, and the reality is that Obama has presided over one of the lowest-spending terms over the past 60 years. Government cutbacks are a further headwind to recovery (something Reagan didn’t face in 1982).
Unemployment remains high and growth is slowing. Most people think we’re still in a recession. Europe is in a recession and threatening to bring the world into a deep downturn. The GOP House and minority in the Senate will resist any measures to move the economy forward — at least until President Romney is sworn in. So welcome to the next few months.
What would you do to fix it?
Read on for the best links of the week and the haiku:
This Week’s Links:
- Europe’s accidental empire || George Soros/Project Syndicate
- Unconventional gas and environmental issues || Conversable Economist
- Will there ever be a meaningful Volcker rule? || Simon Johnson/NYT Economix
- That famous ‘skills shortage’ is a myth || The Atlantic
- The wrong austerity cure || Laura Tyson/Project Syndicate
- Crony capitalism and the crisis of the West || Wall Street Journal
- How fiscal ideology trumped job creation || Felix Salmon/Reuters
- The big lie coup d’etat || Robert Reich
- Misguided ‘fiscal cliff’ fears || CBPP
- FDIC continues to promote the myth that it can resolve megabanks || Naked Capitalism
- The federal budget outlook in one graphic || Washington Post
- The economic impact of knowledge clusters || Atlantic Cities
Today’s Econ Haiku:
Small lenders, new rules
The big boyz just break the rules
And we’re played like fools