The Recession that Provoked No Response

As I write (in July) the administration has proclaimed that the recession is over. One should view such a pronouncement with caution. It’s noteworthy, however, that the administration expects no more than a weak recovery, with a growth rate of 2 percent to 3 percent in the first year—significantly less than the 6.5 percent growth in the first year of the average post–World War II recovery. In the most optimistic scenario, unemployment is expected to remain close to 7 percent for at least a year. So even if the recession is over, it won’t feel that way.

Those in search of the administration’s domestic economic strategy need only consult the Council of Economic Advisors’ Economic Report to the President. ...