Nice Washington Post Piece on the Recovery of the Housing Market

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Nice Washington Post Piece on the Recovery of the Housing Market

Thursday, 18 October 2012 15:39

The Washington Post had a nice piece on the potential impact of the recovery of the housing market on the economy. The piece reasonably assumes that construction returns to its long-term trend share of GDP, rather than getting back to its bubble levels of the last decade. In this case it will make a substantial contribution to the recovery, although it still will not possible to return to full employment without large budget deficits, unless there is a substantial reduction in the size of the trade deficit.

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The fed can do that
written by Floccina, October 18, 2012 7:49

In this case it will make a substantial contribution to the recovery, although it still will not possible to return to full employment without large budget deficits, unless there is a substantial reduction in the size of the trade deficit.

If the fed creates some inflation it should push the dollar down and we do not need to collect taxes to pay debt back.

...
written by Peter K., October 19, 2012 9:36

Good that Irwin counters the "overbuilding" meme which was used to try to buttress the "structural" unemployment argument. This helped elucidate the story for me.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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