July 11, 2016

Are We Ready for the Next Recession?

Introduction

Richard Drew/Associated Press

June’s job numbers were rosy and so is the Federal Reserve’s outlook on the ability of big banks to weather another recession.

But concerns persist about the strength of the economic recovery, and more worryingly, economists have warned that the country is not ready for the next recession when it hits.

What can be done to better prepare for it?

Read the Discussion »

Debaters

Guarantee Everyone a Job

William Darity Jr., Duke University

Seven years since the the Great Recession officially ended, vast numbers of American families remain beset by deep economic insecurity.
Politics Will Stymie Any Preparation for the Next Recession

Michael R. Strain, American Enterprise Institute

Can you imagine Congress and President Obama passing a stimulus bill with tax cuts and spending increases in the next six months? I sure can’t.
Automatic Stabilizers Are Key

Jared Bernstein, Center on Budget and Policy Priorities

Counter-cyclical policies that automatically ramp up unemployment insurance, SNAP and Medicaid all need strengthening.
Keep Unemployment From Mushrooming

Pavlina Tcherneva, Levy Economics Institute

A voluntary federal jobs program would serve as a safety-net: The program would be permanent but the jobs would be transitional.
Reduce the Debt to G.D.P. Ratio

Veronique de Rugy, George Mason University

Fiscal adjustments based on spending cuts signal that a country is serious about getting its house in order. More taxing and spending do not.
The Banks Aren’t as Stable as They Need to Be

Simon Johnson, economist

The Fed has determined that big banks have enough capital to withstand losses in a severe downturn, and can basically load up on more debt. But there's reason to doubt that.