Econs and Humans

The economy, and economics, are in crisis. A severe recession is upon us, and the Obama Administration, although stuffed full of leading economists, has only the vaguest idea of how to fix it. The bursting of the housing bubble cast in doubt the reigning orthodoxy that financial markets can govern Wall Street. The institutions that fund housing over-extended themselves, granting mortgages to many home buyers who could not afford them. Banks woke up last fall to realize that many of the loans they held were worthless. Some banks failed; others were bailed out by the government. Further lending dried up, and growth reversed. The vast stimulus bill passed by Congress in February is a desperate attempt to restart the economy with a flood of cash. No one is at all sure it will work because panic reigns, an emotion that lies entirely outside conventional economics.

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Lawrence Mead is a visiting scholar at AEI.

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About the Author

 

Lawrence M.
Mead
  • Lawrence Mead teaches American politics and public policy at New York University. Known as one of the theoretical architects of the welfare reform of the 1990s, he has written several influential books in which he demonstrates that mandatory work requirements are essential to sound welfare policy. While at AEI, he researched how to institute a work requirement for nonworking poor men comparable to the work tests that were instituted for poor single mothers in previous welfare reforms.
  • Phone: 2129988540
    Email: larry.mead@aei.org

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Calling treason by its name: A conversation with Liam Fox

Join us at AEI as the Right Honorable Liam Fox sits down with Marc Thiessen to discuss and debate whether America’s intelligence agencies have infringed on the personal privacy of US citizens.

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The curmudgeon's guide to getting ahead

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