A couple of New Republic articles try to get to the heart of the economy, why we are here we are, and what it takes to get out of it: It was a bubble driven recession, not a typical business cycle recession, and that makes everything worse. Household debt has almost tripled between the late 1990s and 2007. Now people are paying off that debt, which limits current spending and places a limit to any current expansion. Ironically, now that people are doing the right thing (pay off debt, not add to it) the economy continues to suffer.
- William Galston.
- Raghuram Rajan.
