Building On Quicksand

Business Week, a magazine I'm becoming more and more impressed with recently, has a column by London Business School Dean Laura D'Andrea Tyson questioning the staying power of the current recovery. She cites the Bush tax cuts as having infused a significant amount of money into the economy which has temporarily inflated economic growth numbers without producing the sort of employment and compensation gains that should be typical at this stage of a recovery and which are critical to building a strong economic cycle. She also mentions the increasing dependency of the US economy on foreign investors to suck up the massive debt load, and questions how long this can be sustained in the face of increasing US fiscal weakness.