The U.S. recovery is starting to slip, but in order to find out how to fix that, people need to understand why the recovery was unsustainable in the first place.
Sherle R. Schwenninger and Samuel Sherraden of The New America Foundation has put together a presentation explaining what this U.S. recovery was built on, and why this strategy has ceased to work.
Their conclusion is that the U.S. needs a new, more aggressive, fiscal stimulus that targets job creation. They don’t believe monetary policy, specifically quantitative easing 2, is likely to help without fiscal policy also being in place.
Even if you disagree with their conclusions, it’s actually a great explanation of the headwinds the economy currently faces.