Featured Article <http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2iv5MvdQsbHmS4u-4jYEcmJwHOMiiKPSJWIoQU-NnReZvl0kXjMvtbl14Nm9D0Mv4K2S2OwTL4JWNK9FBYqdke6unKE7VYX8BaY8kzQmZ67jvJVYCNAIAErvi86Fk17cwH17TZiwqbGUKXsW4GJQp-WLPBxpewRqm6_bsRvnSVF6cA==>No Return to Normal Why the economic crisis, and its solution, are bigger than you think. by James K. Galbraith <http://visitor.constantcontact.com/email.jsp?m=1102433536755> Quick Links <http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2ivJn6Qzi_0QKuyh_4kldbGEn8nfVkU8tP4eK0W1i432aqn_1HLTxv2MLyRXIwJPblVgkgmfYw4P-hUff5VDJWojGXVAZLMu_wD6WDwdtwTGArRLqXggETe14dtWBvRT4DHTiuCFperiY7J2RufbSO3f>Masthead <http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2itvNG1wjEkNCX5lg1JDnGTjzn21rOIhjfbPmPdCZUhiKy_DhenNYaAd312SNStgcG2SjRVIyvgrN0Xqj-toFKoJOnW4kIuLgLmZVCSFMazhUZOjZTcPjgCLDo8Kd5oOVOxekBiP1F-biA==>Subscribe to Wasthington Monthly <'"http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2ism1TsktoBH1Kn89CQpksK21dIby7fRjqreSrs3wBle7LxL0vzOILnuia89jB7UvNlVBx8NfcgjjO52jKue2Q_xWTKLdBjjVMTUKA0L_rJ4yE5lke3-hAVrM526Kp5z9Js6UsLZIHGZtFFgoiHTWsBqjS4kBBQ66UTvdsstYK1CFBb6gRiH1FryL-8ONgrGoTZizPMIF>Make Tax-Exempt Donation <http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2itHrse3A9oRjX2Q9ggK-4FOpGwSitf0bJaeKghUT_7Z-HCKq1A7yRGElDXc3tbd1Dtf2wg7sByjs9DYUEBZ03sJeCfC7I76wMfW49u9Cz8FUGi7ffk4S009ceydcXXB5MkXhhkBtC5BU6ncNok7DiDj>Careers No Return to Normal President Obama has predicted that the stimulus package will revive the economy by next year. Recent upticks in housing starts and stock prices give some hope to that view. There are many other reasons, however, to fear that in this economic crisis, the worst is yet to come. In the <http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2iv5MvdQsbHmS4u-4jYEcmJwHOMiiKPSJWIoQU-NnReZvl0kXjMvtbl14Nm9D0Mv4K2S2OwTL4JWNK9FBYqdke6unKE7VYX8BaY8kzQmZ67jvJVYCNAIAErvi86Fk17cwH17TZiwqbGUKXsW4GJQp-WLPBxpewRqm6_bsRvnSVF6cA==>cover story of the upcoming March/April issue of the Washington Monthly, economist James K. Galbraith makes the case for a much darker picture of what's in store. He begins by questioning an assumption held by nearly all modern economists, including those around Obama: that economies are naturally self-stabilizing, and therefore that economic slumps can be righted with relatively modest, short-term nudges from government. That idea fits the experience of every post-War recession. But what if the current crisis is less like those downturns and more like the Great Depression, when the economy famously failed to return to normal? In that case, the actions that official Washington has taken are bound to be woefully inadequate to the challenge. If Galbraith is right, tens of millions more Americans will be out of work in a year or two or five, even if the stimulus creates all the jobs the president expects. Banks will not resume significant lending for years, no matter how much money the Treasury pours into them. And the economy will not recover for many years to come, until the balance sheets of average American households are rebuilt. Based on these conclusions, Galbraith lays out an agenda that establishment Washington can hardly bring itself to contemplate, but had better start thinking about--from creating millions of government jobs for the unemployed to increasing entitlement spending. A sneak preview of Galbraith's article, "No Return to Normal," is available <http://rs6.net/tn.jsp?et=1102511156369&e=001ZprPwiTU2iv5MvdQsbHmS4u-4jYEcmJwHOMiiKPSJWIoQU-NnReZvl0kXjMvtbl14Nm9D0Mv4K2S2OwTL4JWNK9FBYqdke6unKE7VYX8BaY8kzQmZ67jvJVYCNAIAErvi86Fk17cwH17TZiwqbGUKXsW4GJQp-WLPBxpewRqm6_bsRvnSVF6cA==>here. Regards, Paul Glastris Washington Monthly © 2009 Washington Monthly, wholly owned by W.M. Corp., a District of Columbia 501(c)(3) nonprofit corporation. 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