Obama turns neo-Austrian:Towards the end of those three decades, a housing bubble, credit cards, and a churning financial sector kept the economy artificially juiced up. But by the time I took office in 2009, the bubble had burst, costing millions of Americans their jobs, their homes, and their savings. The decades-long erosion of middle-class security was laid bare for all to see and feel.This analysis is, you will not be surprised to see, in my view simply wrong.
....there is no sense in which the level of employment or of GDP that we had in the mid-2000s was unsustainable, or the result of any artificial juicing of an economy. We know what an economy that is artificially juiced beyond its sustainable productive potential looks like: it has rising inflation. That is not what the economy of the mid-2000s looked like....The erudite professor DeLong is in error himself, especially when he claims;
since the average American has a far higher standard of living now; lives in a larger house, has more food, more clothing, more entertainment, better car, more electronic communication devices, higher level of education...but, the intellectual journey of a million miles begins with a single blog post.
- A thirty-year failure of economic growth to be equitable growth.
Or at least, one can hope.