The "New Normal" For the U.S. Economy: What Will It Be?

The "New Normal" For the U.S. Economy: What Will It Be? - Brookings Institution: "The conclusion seems inescapable: we need a new era of public restraint, not just private thrift. Not immediately, of course: given the extent of the economic contraction and job losses, fiscal policy should probably remain expansionary through the end of fiscal year 2011. In the meantime, we should do nothing to make the long-term fiscal situation worse. (In particular, health reform should be genuinely deficit-neutral, without commandeering the resources needed for other purposes, including deficit reduction.)"