Destined for Failure: American Prosperity in the Age of Bailouts

Writing for a general audience, especially those who have doubts that the Bush and Obama administrations have conducted effective economic policies, S獺nchez (economics, College of the Holy Cross) and two of his students argue that the bailouts instituted by these presidents fail because they do not address productivity growth, which they view as the main factor driving the US economy. They assert that the recession is due not to a lack of demand for goods and services but because there are structural problems that have made the US less competitive. They contend that Keynesian economics are not relevant in this environment and discuss the importance of balance sheets, the role of misinformation, informational problems in labor markets and the effects on decision makers, the effects of government regulation in markets, political interference in the housing and job markets, misallocation of resources in health and education, how technology can help, the power of labor unions to create market distortions, how wars really don't help economically, environmental regulation, and excessive taxation. Annotation 穢2010 Book News, Inc., Portland, OR (booknews.com)