What proponents of employment first policies have failed to understand is that inflation causes malinvestments which come to depend on continuing inflation for their existence. That proponents of the fight unemployment school cannot make the connection between inflation and its aftermath tells us a great deal about their level of intelligence and lack of creative thinking as well as their appalling ignorance of the history of economic thought. With all the signs pointing towards recession the temptation will be to accelerate monetary expansion to try and offset falling production and employment. Greenspan has studied enough to understand the problem, even though he is part of it, and what will need to be done and that is allow what he calls imbalances to be liquidated and prices and costs to adjust to the new monetary conditions. Savings fuel economies.
Entrepreneurs drive it.
America has an abundance of entrepreneurs, even though some of them are politically dumb, but it needs more savings. Without savings there can be no growth. So cut taxes, especially those on capital gains, and slash red tape. Regulations are a form of taxation and should be treated as such.