In the past few weeks, the good economic news pouring in has kept newspaper business sections buoyant, but the celebrations may be premature. One of the biggest problems barring a quick comeback for the economy is inadequate aggregate demand—without demand, we can't produce more goods and can't hire more people. The Treasury estimates that the gap between actual and potential output is over 7 percent—that's equal to $1 trillion worth of goods and services. The U.S. has a considerable 12.1 million jobs gap as well, which won't close until 2024 if we keep adding 200,000 new jobs per month, the pace set in December 2011.
Rick Perry has a new minute-long campaign ad out today, and he's pulled out all the emotional stops. It covers all requisite Ken Burns bases—there's baseball, war vets, and even a Tim Tebow kneeling in the rain. There are planes, trains, and automobiles. Watch the magic for yourself.
As part of an effort to push "insourcing," President Obama is proposing tax incentives for companies that move manufacturing jobs back to the United States. “I don’t want America to be a nation that’s primarily known for financial speculation, and racking up debt and buying stuff from other nations,” Obama said during an announcement yesterday.
The score between Romney and "Anyone But Romney" stands at 2-0 after the former governor’s victory in New Hampshire last night, and the likelihood that a Santorum or Gingrich gets the nomination gets slimmer every day. All the candidates have gone south for the rest of the month. The other candidates know that if Romney wins the next two primaries, they have no reason to stay in the race, and are campaigning as if their political lives depends on it.