Why is the U.S. Economy So Slow to Recover?

Since late 2007, the Fed has pumped more than $2 trillion into the U.S. economy by buying bonds. Economist Allan Meltzer asked: "Why is there such a weak response to such an enormous amount of stimulus, especially monetary stimulus?" The answer, he said, is that the obstacles to faster economic growth are not mainly monetary. Instead, they lie mostly with business decisions to invest and hire; these, he argued, are discouraged by the Obama administration's policies to raise taxes or, through Obamacare's mandate to buy health insurance for workers, to increase the cost of hiring.

Read more: http://www.realclearpolitics.com/articles/2013/04/22/the_end_of_macro_magic_118050.html#ixzz2RCEJbg6P
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