There are real risks to the American economy, but I don’t see many of them as being fatal. So far as negative scenarios go, the Japanese case — low growth and constant deflation fighting, which will ultimately require aggressive fiscal or monetary stimulus of some sort combined with big structural reforms — is among the likeliest of the truly bad scenarios. Somewhat less bad but still painful would be a recovery that looked a lot like the last one, only worse — a very uneven recovery that leaves many currently unemployed workers marginally attached or out of the labour force.
— Free Exchange: “America’s Jobless Recovery: A Little Perspective”
