The Broken Economy

Two and a half years after the recession started, Wall Street executives are once again collecting billions in bonuses, businesses are flush with cash, but most of America is still hurting. After a growth spurt at the end of last year, the U.S. economy is slowing, as the fiscal stimulus dissipates and spending contractions at the state and local level undermine injections from the federal government. The growth that has occurred is largely the result of replenishing inventories, and this has run its course. Most distressing, unemployment is at 9.5 percent, a rate historically associated with a severe recession, and it now appears likely that it will rise into next year.