1. Revising Policy Assumptions in the Wake of The Great Recession Sherle R. Schwenninger October 26, 2010

2. The Need for Full Employment Full employment is the best guarantee of economic security and economic opportunity. In order to restore the economy to full employment by 2016 we need to create more than 19 million jobs. 1

3. Policy Produced a Jobless and Unsustainable Recovery Monetary reflation Asset reflation, financial sector profits, and the return of global trade imbalances Tax cuts, cash for clunkers, and unemployment insurance (Temporary) support of consumer spending Modest infrastructure and public works spending Weak job creation and stagnant wages 2

4. Why Policy Wont Deliver Full Employment Over-reliance on monetary policy. Shortcomings of general demand stimulation. Private sector job machine is broken. 3

5. A Growth and Jobs Creation Agenda Substantial public/private investment in infrastructure. Expansion of public services. Pro-growth industrial policy. 4