Zachary Goldfarb and Michael Fletcher of the Washington Post point to a tentative housing market recovery, renewed hiring and a decrease in the number of new unemployment claims, and an uptick in net exports to suggest that the economy may have turned a corner. The article focuses on the potential political implications, but the weak state of the post-crisis labor market is first and foremost a human tragedy. One distinct possibility, however, is that the “green shoots” noted by Goldfarb and Fletcher are not in fact signs of a sustainable economic revival, and that the larger trajectory of fiscal and monetary policy will keep the U.S. economy mired in sluggish growth. This is why many of us hope for a serious shift in fiscal and monetary policy.
by Reihan Salam