The recent actions of President Bush and Federal Reserve to “rescue” the nation from the current economic crisis have not restored confidence in U.S. financial markets. Instead, they have created considerable fear about the underlying strength of the U.S. economy. Yet, the economy is a great deal stronger than many believe, says Lee E. Ohanian, a professor of economics at the University of California, Los Angeles.
Despite the September employment report, he says, there are no signs that the economy is on the verge of a depression:
The U.S. particularly needs highly skilled workers. These workers not only would purchase homes, but would generate higher living standards for all Americans, says Ohanian.
Source: Lee E. Ohanian, Good Policies Can Save the Economy, Wall Street Journal, October 8, 2008.
For text: http://online.wsj.com/article/SB122342618776613613.html
For more on Economic Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=17
FMF Policy Bulletin/ 14 October 2008
