Start Brainstorming For The Next Recession

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Don't look at me.

Because it’s coming, and the people in charge have no idea what to do when it does.

Many economists believe relief from the next downturn will have to come from fiscal policy makers not the Fed, a daunting prospect given the philosophical divide between the two parties….

The next downturn could return the two sides to the bargaining table. But lawmakers will have less room to maneuver “because the entitlement side hasn’t been addressed,” Mr. Corker said. “We haven’t dealt with even the most basic elements….”

The challenge is that these policies “sound simple, but politically, it is really hard,” said Glenn Hubbard, the dean of the Columbia Business School who advised President George W. Bush through the 2001 recession. “We have very little cushion for whoever the next president is and the next congressional leaders if they had to deal, gosh, with anything.”

U.S. Lacks Ammo for Next Economic Crisis [WSJ]

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