The Dow is over 15,000, corporations are sitting on record amounts of cash, M&A activity is picking up, the deficit problem is on track to being solved, inflation is nearly non-existent and the U.S. economy is performing better than that of almost all other industrialized nations. Metropolitan Seattle, with 5.5 percent unemployment, is getting close to what economists would consider full employment. On the other hand, millions remain unemployed, wages are stagnant and inequality is the highest we’ve seen since the 1920s and perhaps even at a historic record. It’s a recovery, but one very different from those seen in the post World War II era.
Consider that a recession comes along around every seven years or so. Also, the banking industry is as dangerous as ever, and so politically powerful that it was most recently able to push back meaningful regulation of derivatives. Federal austerity is holding back a more robust recovery. Recession in the eurozone, a slowdown in China and political tensions in east Asia are among many concerns. What has you most worried?
Read on for the best links of the week and the haiku:
• Recessions can hurt but austerity kills | The Guardian
• The top 10 worst management fads | Globe and Mail
• The myth of a perfectly orderly liquidation authority for big banks | Simon Johnson/NYT Economix
• Google’s multi-front war | Digitopoly
• Rethinking the middle class | Macrobusiness
• Billionaires now own American politics | Salon
Today’s Econ Haiku:
Long run, we’re all dead
Was Lord Keynes speaking about
The Sonics return?