Mark Thoma on the Need for More Economic Stimulus
He writes:
Economist's View: "The Weakest Recovery in Modern Memory"?: Output is not expected to return to potential until well into 2012. Now recall the long delay between the end of the last two recessions and the peak in the unemployment rate.... To be fully effective, plans for additional stimulus should have been in place long ago. However, given how long the recovery is expected to take, it's not too late to do more if we get started right away. But the political climate makes it highly unlikely that labor markets and the economy will get the help that they need.
