What’s Wrong (And Right)

Policy Paper
May 24, 2010

 Click here for the presentation "What's Wrong (and Right) with the Recovery."

I.  What Kind of Recovery?

  • Relatively weak GDP rebound
  • A jobless recovery
  • A lopsided upturn
  • Only partly transformative
  • Inorganic and not yet sustainable
  • The recovery policy gave us


II. More Headwinds than Tailwinds

  • The debt overhang
  • The phasing out of fiscal and monetary stimulus
  • State and local government fiscal crises
  • Continued housing woes
  • The euro crisis, the rising dollar, and a new Asian export push
  • Renewed world deflationary pressures
  • Uncertain tax and regulatory environment

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