Treasury Secretary Paulson and Fed Chairman Bernanke And Congress Are Designing A New Economic Model. But Will It Be A Good One?

Brace yourselves for massive change, as the financial crisis leads to a major redesign of the US economy and a significant recession. The recession is an almost certainty but the shape of the new economy is not. We are sharply moving away from the Chicago-School anti-regulation, pro-market set of rules and practices of the past 30 years toward a much more government-run economy. That should provide more safety but will it also generate the kind of innovation economy and growth that we also need for the 21st century? I don’t know.

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