The Post Catastrophe Economy

How bad will the current recession get? According to Eric Janszen by late 2009 the USA could face unemployment over 10 percent; half of all retail stores boarded up; skeletons of unfinished buildings in cities; and tax revenues down by 30 percent, leading to big cuts in government services. Meanwhile inflation will keep rising as the Fed is forced to devalue the dollar because foreign countries won't lend to the USA anymore. Sounds grim, but the good news is that this crisis will open the door to a saner economic future if we recognize the opportunity to correct decades of bad policy. America can wean itself from the debt-financed growth of the past thirty years and restructure to grow based on old-fashioned savings and investment. Janszen shows that the key is not more big government, but deploying our unique capacity for innovation through private-public partnerships. He calls for a modern New Deal that develops twenty-first century industries such as biotechnology, alternative energy and nanotechnology. And he shows how our financial markets can make it happen.