Has America Lost Its Mojo?

Has America Lost Its Mojo?: This puts the current recession into more perspective.

"Prior to the 1950s, output drops of 15-20 percent in a single year were routine (admittedly, national income accounting was more primitive.) A number of academic economists say we should simply tough it out as we did back then. Recessions have important cleansing effects, helping to facilitate painful restructuring.

But today's social, economic, and political systems ― at least in developed countries ― are unable to withstand a peacetime decline in output of 15-20 percent within a short period. Massive stimulus and intervention ― the U.S. Federal Reserve's current stance ― is unavoidable. One can only hope that the state can get out of the economy half as fast as it is getting in. Nevertheless, the distinct possibility that stimulus and restructuring may work is further cause to hope that the deepening recession will not morph into a full-blown depression."