Is the economy in a dangerous downward spiral, or is this a painful but ultimately healthy adjustment leading to a sustainable growth path?rnMisdiagnosing this recession could lead to bad economic policy, with devastating consequences. If we're in a self-perpetuating spiral but don't respond with massive stimulus spending, the economy could fall into a trough that would rival the Great Depression. If, on the other hand, the economy is naturally finding a bottom, heavy spending could jack up inflationrndangerously and saddle future generations with a huge debt burden.rnWith the unemployment rate at a 26 -year high of 8.1% and hopes for a second-half recovery waning, Congress is deeply split over how to interpret and cope with the crisis. On Mar. 10, House Speaker Nancy Pelosi (D-Calif.) said "we have to leave the door open" to even more spending than is in the Obama Administration's newly passed $787 billion stimulus plan. But Senate Minority Whip Jon Kyl (R-Ariz.) warned the same day against wasteful government spend-rning. Kyl earlier accusedrnPresident Barack Obama ofrn"rather casually throwingrnout some careless language" after thernPresident warned Congress that failurernto pass the original stimulus bill wouldrnjeopardize the nation's economy.
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