Procrastination Economics

By Fareed Zakaria This is the wrong time to raise taxes, say the politicians. The economy is fragile, say the economists. The recovery is halting, say the pundits. In a few years, they all affirm, we will need to get our fiscal house in order. Of course, just a few years ago, the economy was … Continue reading

Economic Policy Needs Common Sense, Not Fed Magic, For Long-term Growth

By Fareed Zakaria The background noise in the wonk world these days is of furious debates over economic theory and policy. The foreground is the American economy, which appears strikingly unresponsive. The Federal Reserve’s much-debated quantitative easing (“QEII”) appears, so far, to have had the opposite of its intended effect: It was conceived as a … Continue reading

Facing Up to the Deficit Test

By Fareed Zakaria The fate of the U.S. is going to be decided over the next year. O.K., I know that’s overly dramatic, but here’s why I say it. The deficit-reduction commission co-chaired by Erskine Bowles and Alan Simpson has put the long-term fiscal health of the country front and center on the national stage. … Continue reading

There’s More to Fear Than Fear

No, we haven’t turned the corner on the banking crisis—we can’t even see the corner. What’s needed is a bold, massive jolt to the system. By Fareed Zakaria Franklin Delano Roosevelt’s first inaugural address is now known for only one sentence: “The only thing we have to fear is fear itself.” But the audience at … Continue reading