developed nations. To regenerate the surpluses that have been lost to politically-directed social objectives is likely to require significant increasing productive efforts without commensurate increases in consumption patterns. Declines in quantity and quality of consumption may be avoided if such surpluses as are available are redirected early on to productive functions, and are diverted from politically directed social objectives, however socially and politically disruptive such redirection may be. Otherwise, to have only "seven lean years" will turn out to be a great blessing. i will tell you where all those unemployed 20+ year olds lead, if the condition lasts long enough that they become an "institution." --  the same place they lead in the undeveloped world, and in europe, and that is either perpetual privilege as "students," or political violence in the street, or both, if they turn leftist as is quite likely. You neglected to mention that GWB will be blamed for this, as Hoover was blamed for the entire First American Depression from 1929 to WWII. America was saved from that depression only because WWII destroyed economies around the world, creating vast markets for American products. No more. This time, once the downward spiral makes enough people dependent on the Federal Government, and once their poor educations make enough people incapable of rational thinking, America will be lost, perhaps permanently. Empires ascend to power in hobnail boots and descend into decadence in silken slippers. Sound familiar? Keeping interest rates low is an indirect form of social engineering. Why?