January 20, 2011

10% Unemployment: Here to stay?

Matthew D. Mitchell

Senior Research Fellow

“Washington has misdiagnosed this recession. Roughly speaking, the economy is the result of intersection of supply and demand, but   Washington has almost unilaterally seen it as a demand problem, and so if it’s a demand problem, they think that there’s an really easy answer and that’s to give money to people. People have more money in their pockets, they go out and spend, and that will prop up the economy.  And that hasn’t happened. And a big reason that hasn’t happened is because there’s something more fundamentally wrong with the economy.”