Dr. J.D. Foster – Deputy Chief Economist at the U.S. Chamber of Commerce WHEN WILL THE RECOVERY TAKE OFF?
Dr. Foster addressed the question “when will the recover take off” by comparing it to past recoveries. He suggested that, historically speaking, the recover from the 2007 recession is about half of what past recovers have been. People are getting paid half as much and half as many people are employed from pre 2007 recession numbers.
Dr. Foster suggests that we are only two best economic growths on record years away from where we should be. He believes this will only be possible with entrepreneurial spirit, flexibleDr. J.D. Foster financial and labor markets and a benign policy environment. That should be no problem. Of course, when you look at it that way it is easy to see how the effects of poor policy focus, tax hikes, income inequalities and uncertain regulatory policies have bogged down the recovery. Businesses and individuals alike have a hard time making major decisions when they don’t know where regulations and policies are going.
Foster does hold some real optimism though; in strong household balance sheets and upward trends in the housing market. He also sees the labor market becoming more flexible. With more access to capital people are able to sell their houses and move to jobs. To listen to the full presentation tune into the AWRF PodCast