As we gather today, the third anniversary of the collapse of Lehman Brothers approaches. Even after all of that time, the U.S. economy continues to disappoint, and the U.S. labor market has hardly made any progress at all. The latest economic data suggests that growth has moderated considerably, while inflation is picking up, and fears of stagflation, not seen since the 1970s, are renewed.
The sorry state of the current economy is the predictable result of a serious policy error that appears to have been motivated by a fundamental misunderstanding of the economic challenges we face as a nation.
Kevin A. Hassett is a senior fellow and director of economic policy studies at AEI.