Bubble Gum Economics

In the wake of the government's stimulus plan, Paul Krugman has issued a strong warning in New York Times yesterday. Whereas the American economy will hopefully start its stabilisation process some time after July next year, it is very unlikely that the business as usual mode promoting a bubble-to-bubble expansion will be enough to prop up the desired vibrancy. Unless the deep structural challenges are addressed, reversing the nationwide bearish mood will remain an uphill task. Nevertheless, America can rely on its innovation-driven ethos for recovery. Will Dodoland's survival instinct prove resilient in the face of official self-delusion?