Thought of the day....

“We’re going into an extended period of weak economy, of economic malaise,” Stiglitz said. The U.S. will “grow but not enough to offset the increase in the population,” he said, adding that “if workers do not have income, it’s very hard to see how the U.S. will generate the demand that the world economy needs.”

The Federal Reserve faces a “quandary” in ending its monetary stimulus programs because doing so may drive up the cost of borrowing for the U.S. government, he said.

“The question then is who is going to finance the U.S. government,” Stiglitz said.

From here. All of this means, is that the standards of living for the typical American will decline for the foreseeable future.

70 years of creeping socialist government policy is to blame and has created an environment where the economy gets more-and-more brittle as the government takes control over larger-and-larger swaths of the American economy. As the increasing involvement in the US markets has taken place over the past 7 decades whether direct or indirectly, has this resulted in a more stable economy? I think not as the following quote illustrates from the head of Harvard's medical school.....

This employer-based system arose not by thoughtful design but as an unforeseen result of price controls during World War II and subsequent tax policy. How this developed and persisted despite its unfairness and maladaptive consequences is a powerful illustration of the law of unintended consequences and the fact that government can take six decades or more to fix its obvious mistakes.

From http://gregmankiw.blogspot.com/2009/09/flier-on-health-reform.html.