I’ve apparently managed to confuse some people in my post yesterday about federal government spending and taxing as a share of the economy. Though to be fair to myself, always a good practice, it looks to me like those people a) don’t read my stuff (unforgivable!), or b) don’t want to face historical facts. First,… Read more
Well, there’s the stock market and there’s the real economy. They’re related but they’re not the same thing. Here’s why. To be clear, nobody knows when the next recession will hit, so I’m decidedly not saying all clear, happy-dappy! To the contrary, I strongly urge us to be ready for the worst.
A commenter, after gazing at these figures, asks: how much influence do presidents really have over the economy anyway? I dove deeply into this here, riffing off of an academic paper comparing economic outcomes between terms when D’s or R’s controlled the White House. The economy grows faster under Democrats, which is good to know,… Read more
But I do strongly suspect that policy makers–both the monetary and fiscal ones–won’t be ready for it. Over at WaPo.
Larry Summers has a piece worth reading in today’s WaPo called “Preparing for the next recession.” I liked it, in terms of convincingly arguing the limits of the Fed, but beyond that, there’s wasn’t a lot in terms of actually…you know…preparing for the next downturn – other than his closing sentence that the issue “…demands… Read more