Sobering Reading on the Great Recession and proposals on how to get out…

A new report published by the New America Foundation written by Daniel Alpert, Westwood Capital; Robert Hockett, Professor of Law, Cornell University; and Nouriel Roubini, Professor of Economics, New York University, is worth checking out for a macro view of the causes of the current great recession and for suggestions on a path forward: A Way Forward (Oct. 2011).  A N.Y. Times op-ed very favorably writes up the report, so there is little I can add.  The report does a good job connecting globalization of production to the credit bubble as a substitute for income growth to support consumer demand and the resulting post-collapse contraction.

Definitely worth checking out!  (As a quibble, the story in the report of the split between productivity and income growth, with high returns to capital and stagnant labor returns, is largely told as reflective of changes in the international competitiveness of American labor.  Neglected are the deliberate domestic choices tied to faith in the free market and the weakening of the power of labor, particularly unions, to fight for a fair share.)

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