The New York Times - Breaking News, World News & Multimedia. Washingtonpost.com - nation, world, technology and Washington ar. Jane's Information Group. McClatchy | Homepage. Business. Grasping Reality with Both Hands. Are We Slipping Back Into a Recession? - Business.
Federal Reserve Chairman Ben Bernanke is speaking today on the state of the economy. We know what he'll say. The economic recovery is proceeding, but slowly. The unemployment picture is improving, but slowly. The question is whether all this slowness will lead not only to a slowdown, but to a turnaround. Are we heading to a double-dip recession, as Robert Reich and other economic commentators have suggested?
Let's weigh the evidence: Why the recovery is in deep trouble: 1. 2. 3. 4. 5. Why the recovery is on track: 1. 2. 3. 4. 5. The U.S. Is Not Too Big To Fail. As several recent surveys make clear, concern about deficits and debt is rising sharply. An NBC/Wall Street Journal survey conducted in early May showed that the share of individuals rating “the deficit and government spending” as the top priority for the federal government to address has jumped since January from 13 to 20 percent—second only to job creation and economic growth.
According to Gallup, “federal government debt” now ties with terrorism for the top spot in perceived threats to our future well-being. It is entirely possible that we are reaching an inflection point in public attitudes that will force the political system to change course. Indeed, as Janet Hook shows in a well-reported piece in Monday’s Los Angeles Times, concerns about the deficit are already forcing congressional Democrats to scale back ambitious plans for continuing stimulus. All of this raises the question of whether public sentiment coincides with sound economics.