One of the remarkable things about the ongoing economic crisis is the endless search for explanations of something that’s actually quite simple — the sluggish pace of recovery. You have a large overhang of private debt; you have a still-depressed housing sector; and you have contractionary fiscal policy. Add to this the well-established fact that recovery tends to be slow after recessions caused not by tight money but by private-sector overreach, and there’s just no mystery that needs explaining. ~~Paul Krugman, from “Another Bad Story Bites The Dust”
The Nuts and Bolts of America’s economy and its stagnant recovery exposed and explained in three fiscal measures.