How Can the Economy Recover?

December 23, 2010

Jeff Madrick

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Seeds of Destruction: Why the Path to Economic Ruin Runs Through Washington, and How to Reclaim American Prosperity
by Glenn Hubbard and Peter Navarro
FT Press, 266 pp., $26.99                                                  

Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis
by Anatole Kaletsky
PublicAffairs, 396 pp., $28.95                                                  

Aftershock: The Next Economy and America’s Future
by Robert B. Reich
Knopf, 174 pp., $25.00                                                  

Many recent books and articles by economists and policy analysts ask how the US can recover rapidly from the worst economic crisis since the 1930s. They usually merely assume that the ideal objective is to return to the stable economic growth that preceded the crisis of 2007 and 2008. The underlying assumption is that once adjustments are made, the economy will continue again much along the path it had for a quarter-century. This optimism isn’t at all warranted.

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