Research and Commentary
Karen Dynan, October 29, 2009
The Outlook for Consumer Spending and the Broader Economic Recovery
How long will the economic recovery take? Karen Dynan testified before the Joint Economic Committee that there is a great deal of uncertainty about the strength and speed of the nation’s recovery, with gradual expansion being the most likely economic scenario. She says that consumer spending is likely to grow modestly over the next few years because of weak income growth, higher saving and lower borrowing. Policymakers have options to bolster the recovery but they should be mindful of the long-run costs, particularly in terms of the budget deficit, she says. Read More
U.S. Economy, U.S. Economic Growth
UPCOMING EVENT
Thursday, November 19, 2009
9:00 AM to 11:45 AM
Washington, DC
The current economic crisis is not only a national crisis; it is also a metropolitan crisis. And soon the downturn will bring a local government fiscal crisis. On November 19, the Brookings Metropolitan Policy Program and the National League of Cities will co-host a forum on city fiscal conditions, the responses being undertaken by creative mayors, and the implications for national economic recovery. Read More
UPCOMING EVENT
Wednesday, November 11, 2009
12:30 PM to 1:30 PM
Washington, DC
The House and Senate have both voted to expand and extend the homebuyer tax credit initially approved as part of President Obama’s economic stimulus package. While this move is intended to spur home sales, many experts argue that extending the tax credit is bad policy. On Wednesday, November 11, Ted Gayer and Politico Senior Editor Fred Barbash will be online to answer your questions about the homebuyer tax credit in a live web chat. Read More
RESEARCH AND COMMENTARY
Gary Burtless, November 06, 2009, The Brookings Institution
The latest employment and unemployment statistics confirm that, at least in the job market, this is the worst economic downturn since the Great Depression, says Gary Burtless. These jobs numbers followed on the heels on new stronger productivity numbers, showing truly bad news for job seekers. Read More
RESEARCH AND COMMENTARY
John C. Austin, November 04, 2009, The Brookings Institution
During a recent visit to Milwaukee, John Austin explored the economic revitalization of the Great Lakes region. Austin writes that these efforts have been given a major boost by President Obama, signing a bill that provided $475 million in Great Lakes cleanup dollars, a down-payment on a long term multi-billion dollar federal-state-local plan to clean water and reboot municipal waste systems. The empirical data shows that the clean up is creating jobs and is an economic engine throughout the Great Lakes region. Read More
RESEARCH AND COMMENTARY
Mark Muro and Jonathan Rothwell, November 03, 2009, The Brookings Institution
Much is in question today as Senate Environment and Public Works Committee chairman Barbara Boxer tries to push ahead with work on climate-change legislation, with Republicans threatening a boycott of the markup. Mark Muro and Jonathan Rothwell examine the costs of cap-and-trade regulations for the U.S. economy and families. Read More
RESEARCH AND COMMENTARY
Isabel V. Sawhill, November 03, 2009, National Journal
In light of the news that a group of ten senators has called for the creation of a bipartisan commission on the budget to create a long-term plan to reduce budget deficits, Isabel V. Sawhill cautions that failing to institute such a plan could lead to slower growth or an economic crisis, along with reduced flexibility to get the economy moving again or handle a new international threat. Read More
RESEARCH AND COMMENTARY
Isabel V. Sawhill and Ron Haskins, November 01, 2009, The Washington Post
Americans have always believed that their country is unique in providing the opportunity to get ahead. Ron Haskins and Isabel Sawhill deconstruct five myths about economic mobility in the United States, saying that we need better policies to help create a true opportunity society. Read More
RESEARCH AND COMMENTARY
Karen Dynan, October 30, 2009, The Brookings Institution
Yesterday's GDP figures may show that growth has returned to the US economy, but 3.5 percent isn't a strong rebound compared to past recession bounce-backs, writes Karen Dynan. She says the recovery will likely be long, and that means the economy is unlikely to see full employment for many years. Read More
RESEARCH AND COMMENTARY
Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang and Eileen Mauskopf, October 30, 2009, Federal Reserve Board: Finance and Economics Discussion Series
In order to shore up the housing market and prevent foreclsoures, the government has instituted the Home Affordable Modification Program (HAMP). Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang and Eileen Mauskopf find that HAMP's key features should alleviate some of the previous obstacles to successful loan modifications. But, they say, the program is not well-suited to address payment problems associated with job loss, and they believe focusing on reducing payments rather than principal is ineffective when the homeowner has negative equity, with short sales being a better option. Read More
RESEARCH AND COMMENTARY
October 29, 2009, The Brookings Institution
The nation appears to have entered a fragile state of recovery, with the worst recession since the 1930s at an end. After four straight quarters of contracting economic activity, the Commerce Department reported this morning that the economy grew in the third quarter of 2009, fueled by government spending on cars and homes. Experts from around the halls of Brookings responded to this news. Read More
VIDEO
Alice M. Rivlin, October 28, 2009
This month marks 80 years since the Wall Street crash of 1929 that was one cause of the Great Depression. Alice Rivlin says the 1929 crash led to the creation of the financial and social safety net measures that have helped prevent today's economic crisis from being a full-blown depression.
PAST EVENT
Wednesday, October 28, 2009
12:30 PM to 1:30 PM
Washington, DC
Recent decades have seen sharply rising incomes for the rich, modest progress for the middle class, and little or no progress for the poor. How can more people achieve the American Dream? On Wednesday, October 28, Ron Haskins and Politico Senior Editor Fred Barbash conducted a live web chat about expanding economic opportunity in America. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, October 28, 2009, The Brookings Institution
As the financial system continues to stabilize, the House Financial Services Committee has drafted legislation intended to prevent future crises. The latest bill, which has been endorsed by the Obama administration, focuses on systemic risk and financial institutions that are deemed to be “too big to fail.” Douglas Elliott analyzes the 253-page bill, saying he thinks the enhanced resolution authority is essential, but he raises serious concerns about the structure of the council intended to tackle systemic risks. Read More
RESEARCH AND COMMENTARY
Ted Gayer, October 28, 2009, The Brookings Institution
Some economists and policymakers are discussing the idea of a value added tax (VAT) as a way to solve our deficit problems. Ted Gayer looks at the VAT through the prism of behavioral economics and warns that policymakers could use insights gleaned from this field of economics to deliberately temper healthy economic and political constraints on the growth of government. Read More
RESEARCH AND COMMENTARY
Ron Haskins, October 28, 2009, The Brookings Institution
Recent decades have seen sharply rising incomes for the rich, modest progress for the middle class, and little or no progress for the poor. How can more people achieve the American Dream? To address the question, Ron Haskins and Politico senior editor Fred Barbash conducted a live web chat about expanding economic opportunity in America. Read More