This morning's Wall Street Journal has an article that focuses on Larry Summers' views on the future unemployment in the US. Summers is Obama's number one economic adviser.
According to Summers, "even on optimistic assumptions, there is going to be substantial unused capacity in this economy." No kidding! What Summers means by "unused capacity" is sluggish economic growth and sky high unemployment. Summers is admitting the failure of the Obama economic strategy, assuming there is one.
An economy that had under four percent unemployment just a scant five years ago, now cannot find its way back to eight percent unemployment. Why? How did the world change so fast?
Summers thinks its because of evil Wall Street. As long as that's how you see things, there is no way to turn economic engine around. Free markets can turn things around and quickly. But free markets are not part of the Summers-Obama agenda. Instead villification of the business community, higher taxes on entrepreneurs, more mandates on employers -- these are the strategies of the Obama Administration.
The predictable result: Summers' stagnation. He's right. They have shackled the economy in a way that recovery will prove very difficult.
Thanks Larry for setting us straight.