Okun, a keen marketer of economic concepts, recognized the communication value of having a quick and dirty indicator of economic conditions at one's disposal. With so much misery having been wrung out of the economy lately, you might think people would be fairly pleasant about the subject, if not borderline blissful. Au contraire . Apparently, there is still plenty to be miserable about. Although it is clear why layoffs would affect the behavior of those directly harmed, large spillovers are not evident.
Some people are glum about what they regard as the inadequate pace of economic growth.
Different economic policies could, possibly, lead to a faster growth track. To reach this objective, economists typically recommend policies that encourage saving, enhance capital formation, reduce regulatory taxes, and promote free trade. In discussing capital formation, most people ignore housing, although it actually forms the largest component of our capital stock. Without altering the size of that stock, the nation could develop a more productive capital base by changing the mix of housing and business capital. Nevertheless, despite the disproportionate share of housing-related tax preferences accruing to the wealthiest households, government programs that support housing expenditures remain quite popular.