Monday, February 7, 2011

Higgs, Regime Uncertainty, A prediction

Higgs makes the following prediction that, to me, seems both reasonable and likely:


If heightened government intervention in the economy continues to discourage America's entrepreneurs and investors from acting vigorously, six years from now the United States may have no more people working than were employed in November 2007. Such stagnation would be a national tragedy.

The government's biggest challenge today is to restore lost confidence. Until economic prospects become clearer and brighter, the labor market will, at best, only continue the slight, sluggish improvement we saw in 2010.

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