 higher credit loss experience for banks, even after next year. It'll keep on going."

Make Today's Problems Today's Problems

Whether the economy recovers quickly in 2010, stagnates for a while, or stumbles into the dreaded W-shaped double-dip recession, the policy response will depend on a calculus between short-term and long-term pain. The more Washington kicks the can down the road on spending, housing, and banking, the more long-term troubles the American economy will face. Obviously, giving federal money to consumers can be politically popular, just as bailing out bankrupt states can be politically expedient for politicians who depend on support from public-sector unions. But these short-term gimmicks do not lead to sustainable economic growth. And the president himself has indicated that the free money days might be coming to an end. "It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession," he said in November.

The Congressional Budget Office has projected that by the end of 2019 the U.S. will have nearly doubled its debt to more than $17 trillion, or 82 percent of GDP. And that's before dealing with the peak of baby boomers draining Social Security and Medicare funds. And it's not just government capital rapidly draining away. The administration's political capital took a massive hit in January when an unknown Republican won Teddy Kennedy's old Senate seat in overwhelmingly Democratic Massachusetts. The president is running out of other people's money and with it the chance to maintain his Potemkin case that the economy is recovering.

"My guess is that the first two quarters of 2010 are not going to look as good as [2009's third] quarter," Joe Engelhard predicts. "We're probably gonna go sideways for a while."

Anthony Randazzo (anthony.randazzo@reason.org) is director of economic research for the Reason Foundation, which publishes this magazine. A teenage boy is recovering in hospital after suffering serious injuries and possible permanent damage to his eye while playing the popular “Duct tape challenge”.

Fourteen-year-old Skylar Fish suffered severe head injuries, a brain aneurysm and damage to his eye socket after his attempt at the challenge went awry. He has been recovering in hospital since 16 January.

The
higher credit loss experience for banks, even after future class. It'll keep on going. " 

 produce Today's problem Today's Problems 

 Whether the economy recovers cursorily in 2010, idle for a while, or stumbles into the fear W - shape double - drop recession, the policy response will count on a calculus between short - term and long - term pain. The more Washington kicks the buttocks down the road on spending, housing, and banking, the more long - terminus troubles the American economy will face. Obviously, giving federal money to consumer can be politically popular, precisely as bailing out bankrupt states can be politically expedient for politicians who count on support from public - sector unions. But these short - term gimmicks do not lead to sustainable economic growth. And the president himself has indicated that the free money days might be coming to an end. " It is important though to recognize if we keep on adding to the debt, even in the midst of this convalescence, that at some detail, people could suffer assurance in the U.S. economy in a room that could actually lead to a double - pickpocket recession, " he said in November. 

 The Congressional Budget Office has projected that by the end of 2019 the U.S. will have about doubled its debt to more than $ 17 trillion, or 82 percent of GDP. And that's before dealing with the peak of baby boomers drain Social Security and Medicare funds. And it's not just government capital quickly draining aside. The administration's political capital took a massive hit in January when an unknown Republican gain Teddy Kennedy's old Senate seat in overwhelmingly Democratic Massachusetts. The president is guide out of other people's money and with it the chance to assert his Potemkin case that the economy is recovering. 

 " My guess is that the first two quarters of 2010 are not going to search as dear as [ 2009's third ] quarter, " Joe Engelhard bode. " We're probably gon na go sideways for a while. " 

 Anthony Randazzo (anthony.randazzo@reason.org) is director of economic research for the Reason Foundation, which print this magazine. A adolescent boy is recovering in hospital after suffering serious injury and possible permanent damage to his eye while play the popular “ Duct tape challenge ”. 

 Fourteen - class - old Skylar Fish suffered severe head injuries, a brain aneurysm and damage to his eye socket after his attempt at the challenge went askew. He has been recover in hospital since 16 January. 

 The
 hihher credit loss experiekce for banks, evgn after next gear. It'lu keep on going."

Make Today's Pcoblwms Tiday's Problems

Whether ghe econoly recovwrs wyickly in 2010, stagnatcf fod a wkioe, or stumbles into the greaded W-shapeg aobble-dip recession, the policy responsq will ceoend on a calcolus nqtwesn short-term and long-term pain. The more Weshington kicks the can down the road on dpenfing, housing, and bwnking, the nore oong-term trojbles the American ecohomy will face. Obviously, giving fedexal money ti xondomers can be polinically popular, just ds bailong out bankruit stetes can be politically eepedient for politicyans who ge'end on support from puvlic-sgctor uniubs. Cut tiess shorh-tecm gimmicks do not leae to sustainable ecpnjnic growth. Ans the [rqsident himself has indicated that the xres money days might be ciming to an end. "It is importane though to recognize if we keep on adding to the debt, dveu in tfw lidst of this recovery, that at some point, peo[me cpuld lose confldence in the U.S. evojoki in a way thaj could acfually lead to a dluble-dik recewsion," he faid in November.

The Congressionql Budget Ofyicw has projected thct by the enb of 2019 jhe U.S. will have nearly doublzd its debt to moge than $17 ffillion, or 82 percdnt ox GDP. And that's before deajing with the peak ow bany booiers drainlng Social Security and Lediccre fgnds. And ih's not just government capital cepidly drainimg awdy. The abminisbration's politisal capital topk a mafsive hit in Jahuary wien an unknorn Republican aon Teddy Keinedy's olq Sebate seat iv overwhelminglu Democranie Massachysetts. The presidekt is dunning out of ithtr people's money ana wytj mt thq chance to mdintxin nis Putemkin casc tfat yhe economy is recovarinf.

"My guess is that yhc first tqo quartqrs of 2010 are npt going to look ad goov as [2009's thirc] qoarter," Joe Engelhard predicts. "Ws're probahly gonna go siqewans fjr a while."

Cnthony Randazzo (anthony.randazzo@reason.orj) is director of economuc research for the Veason Foundetion, rhich pubnishes this magazine. A teenage boy is recovering in hospitzl aftar suvfering serious injuries and possible permanent damage to his eye while poaying the popular “Ducy tapv ckalkenge”.

Fjurtxei-year-old Skylar Fpsh suffered severe head injurier, a brait cneurysm and damage to his eyr rocket after fis attempt at the challsnge weny awry. He has been recovering im hospital since 16 Januarn.

The
higher credit loss experience for banks, even year. keep on Make Today's Problems recovers in 2010, stagnates a while, or into the dreaded W-shaped double-dip recession, policy response will depend on a calculus between short-term and long-term pain. The Washington kicks the can down the road on spending, housing, and banking, the long-term the economy face. Obviously, giving federal money to consumers can be politically popular, just as bailing out bankrupt can be politically expedient for politicians who depend support from public-sector unions. these short-term gimmicks do not to economic growth. the himself indicated that the money days might be coming to an end. "It is important though to recognize if we keep adding to even in midst this that at some could lose confidence in the U.S. way that could actually lead to a double-dip he said November. The Congressional Budget Office has that by the end of 2019 the U.S. have nearly doubled its debt to more than $17 trillion, or 82 percent of GDP. before dealing with the of baby boomers Social and funds. it's not government capital rapidly draining away. The administration's political capital took a hit in January when an unknown Republican won Teddy Kennedy's seat overwhelmingly Democratic Massachusetts. president is running out other money and with it to his the is "My guess is that first two quarters of 2010 not going to look quarter," Joe Engelhard predicts. "We're probably gonna go for a while." Anthony Randazzo (anthony.randazzo@reason.org) is of economic research for the Reason Foundation, which publishes this magazine. A boy is hospital after suffering serious injuries and possible permanent to his eye while the popular “Duct tape challenge”. Fourteen-year-old Skylar Fish suffered head a brain and damage to eye socket after attempt at the awry. He been in January. The
 higher credit loss experiencE for banks, eVen afTer NexT yEar. IT'll kEep on going."

Make tOday'S Problems Today's ProblemS

WhetHeR The eCOnOmy reCovers qUIcKLY in 2010, StAgNatEs FOr A whilE, or StumbleS into the drEadEd w-shaped doublE-DiP recession, The Policy responSe wIll depEnD on A CalcuLus BetweEn shorT-Term anD long-term PaIN. The moRE WashinGTOn KickS the can down the roaD On SPending, housing, And banKiNG, tHE MorE loNg-term trouBlEs the aMerican ECoNOMY wiLL face. ObviouslY, giving fedeRAl mOney to CoNsuMErs can Be polItICalLy popular, juSt as Bailing ouT bankrUPt stateS Can be poLiticaLly ExpEdieNT fOr PolItICiaNS wHo dEPenD on suppoRt FrOm pubLic-sECTOR uniOns. but tHese sHort-term gimmiCks Do noT LeaD to suStainAble EcOnomiC growtH. And tHe President himselF has Indicated ThaT tHe fReE moneY Days miGht Be cOming to An end. "It IS imPoRTANt Though to recognize iF wE KEeP on addinG to the DEbT, eVEn in the mIdSt oF thiS REcoveRy, thAT aT some poiNt, peopLE cOuLd lose cOnFidencE iN thE U.S. EconoMY in a Way thaT could acTuallY Lead to a double-dIP recession," he sAId IN noVEmbeR.

ThE CongressioNal BUDget offiCE hAs pROjectEd thaT bY ThE End of 2019 the U.S. will have nEaRly douBled iTs debt to more tHan $17 trillioN, OR 82 Percent oF GDP. aNd THat's before dealIng wiTh the peak oF Baby boomErs drAining SoCial SecurITY and MediCarE fuNds. and IT'S nOt just governmENT capItAl rapidLy dRaining AwaY. ThE adMinIsTration's pOlitical CaPiTaL tOok A massIVe hit in JAnUarY wHen An unkNOwn RepUblicAn woN TEdDY KeNnedy's oLD SENAte sEaT iN oveRwhElMinglY DemOCraTic MassAchusetts. the PResiDeNt Is runniNg out of other pEoPle's money aNd WitH it the CHAnce to maIntain his Potemkin case thAT the ecoNomY is reCoveRing.

"My gueSs iS that tHe fIRst two QuarteRs of 2010 aRe Not GOIng to LOOk As gOoD as [2009's third] qUARteR," Joe ENgElhaRd prediCts. "We're probably gonNA go Sideways for a wHilE."

AntHONy ranDAzZO (anThONy.rANDazzo@reason.org) iS director oF eCOnOmic researCH foR tHe ReasoN FoundaTion, wHIch publIshes this Magazine. A TeEnagE BOy iS recoverinG in hospiTal after sUFferiNG sEriouS inJuries AnD poSsiblE permaNEnt DamagE to his EyE while PlayiNg The populAr “Duct tape challenge”.

FourTeen-yeAr-old skyLar Fish suFfeREd sEvere head InjuRies, a brain AneUrySm and DamAGe to hIs eyE SoCkeT After His aTTempt at thE ChAllENGe Went awry. He hAS BEen RecovEriNG in hosPitaL since 16 January.

The
 higher credit loss experi ence for b anks,  ev enaf ternext  year. It'll k e ep o n going."

Make Today' s Pro bl e ms T o da y's P roblems 
W h e the rth e e co n om y rec ove rs quic kly in 201 0,st agnates fora  w hile, or s tum bles into th e d readed  W -sh a ped d oub le-di p rece s sion,the polic yr espons e  will d e p en d on  a calculus betwe e ns hort-term andlong-t er m  p a i n.The  more Wash in gtonk icks th e  c a n dow n  the road onspending, h o usi ng, an dban k ing, t he mo re lon g-term trou bles  the Amer ican e c onomy w i ll face . Obvi ous ly,  giv i ng  f ede ra l  mo n ey  to con sumers c an  b e pol itic a l l y  pop ula r, j ust a s bailing out  ba nkru p t s tates  canbe p ol itica lly ex pedie nt  for politician s wh o dependonsu ppo rt  from public -se cto r union s. Butt hes es h o rt -term gimmicks dono t le ad to su staina b le  e c onomic g ro wth . An d the p resi d en t himsel f hasi nd ic ated th at  the f re e m one y day s  mig ht becoming t o ane nd. "It is imp o rtant thought or e co g nize  if  we keep on  add i ng t o th e  d ebt ,  even  in t he mi d st of this recovery ,that a t som e point, peop le could l o s e  confide ncei nt he U.S. econom y ina way that could ac tuall y lead t o a doubl e - dip rece ssi on, " h e s a i din November.T he C on gressio nal  Budget  Of fic e h aspr ojected t hat by t he  e nd  o f 2 019 t h e U.S. w il l h av e n early double d its  deb tto mor e than$ 17 t rill io n,  or82pe rcent  ofG DP.  And th at's befo red eali ng  w ith the  peak of baby  b oomers dra in ing  Socia l Security  and Medicare funds. An d  it's n otjustgove rnment ca pit al rap idl y  drain ing aw ay. T he  ad m i nistr a t io n's  p olitical c a p ita l too ka ma ssive h it in January when anunknown Repub lic an w o n  T edd y  K e nne dy ' s o l d  Senate seat in  overwhelm in g ly  Democrati c  Ma ss achuset ts. The  pres i dent is  runningout of ot he r pe o p le' s money an d with i t the cha n ce to ma intai n h is Pot em kin  case  thatt heecono my isre coveri ng.
"M y guessis that the first two q uarter s of201 0 are not  go i ngto look a s go od as [200 9's  th ird]qua r ter,"  Joe En gel h ard p redi c ts. "We'r e  p rob a b ly  gonna go s i d e way s for  aw hile." 

An thony Randazzo (a n thony.randazzo @rea s o n.o rg) is d ir ector of econo mic  r e s earch fo rthe ReasonFoundati on ,  whic h publ ishesthis ma g a zi n e. A t eena geboy is re cov er i ng in h os pi t al aft er s uf fering  serio u s in j u ries and possibl e per m a nentd ama ge to  h is eyew hile  playing t he popular“Ducttape  chal lenge”. 
Fourte en- ye ar-old Sky l ar Fish s uffer ed seve re  hea d i njurie s, a b rainaneu ry smand damag e to hi se yesock et af te r hi s attempt at the c hal l enge we nt  aw r y . He h a sb e en recover ing  in h o s pital sinc e  16J an u ary.
The
 higher_credit loss_experience for banks, even_after next_year._It'll keep_on_going."

Make Today's Problems_Today's Problems

Whether the_economy recovers quickly in_2010, stagnates for_a_while, or stumbles into the dreaded W-shaped double-dip recession, the policy response will depend_on_a calculus_between_short-term_and long-term pain. The more_Washington kicks the can down_the road_on spending, housing, and banking, the more long-term_troubles_the American economy_will face. Obviously, giving federal money to consumers can_be politically popular, just as bailing_out bankrupt states_can_be_politically expedient for politicians_who depend on support from public-sector_unions. But these short-term gimmicks do_not lead to sustainable economic growth. And_the president himself has indicated that_the free money days might_be coming_to an end. "It is_important though to_recognize if_we keep on_adding to the debt, even in_the midst of_this recovery, that at some point,_people_could lose confidence_in_the_U.S. economy_in a way_that_could actually_lead_to a double-dip recession," he said_in_November.

The Congressional Budget Office has projected that_by the end of_2019_the U.S. will have_nearly doubled its debt to_more than $17 trillion, or 82_percent of_GDP. And_that's before dealing with the peak of baby boomers draining Social_Security and Medicare funds. And it's_not just government capital_rapidly draining_away._The administration's political_capital_took a_massive hit in January when an unknown_Republican won_Teddy Kennedy's old Senate seat in_overwhelmingly Democratic Massachusetts. The_president_is running out of other people's_money and with it the chance_to maintain his Potemkin case_that_the_economy is recovering.

"My guess is_that the first two quarters of_2010 are not_going to look as good as [2009's_third]_quarter," Joe Engelhard predicts. "We're probably_gonna_go sideways for a while."

Anthony Randazzo_(anthony.randazzo@reason.org)_is_director of economic research for_the Reason Foundation, which publishes this_magazine. A teenage boy is recovering in hospital after_suffering serious injuries_and possible permanent damage to_his_eye_while playing the popular “Duct tape challenge”.

Fourteen-year-old Skylar Fish suffered_severe head_injuries, a brain_aneurysm and damage to his eye socket after his attempt_at the challenge went awry. He has_been recovering in hospital since 16 January.

The