Now, almost a decade after the Great Recession hit, the story of its origins and course has become familiar. It began in December 2007, soon after the U.S. housing bubble burst, triggering the widespread collapse of the U.S. financial system. Credit dried up, as banks lost confidence in the value of their assets and stopped lending to one another.
Today, there is essentially one accepted narrative of the economic crisis that began in late 2007. Overly optimistic homebuyers and reckless lenders in the United States created a housing price bubble. Regulators were asleep at the switch.
Jason Furman discusses long-term trends in labor force participation, especially among men in their prime working years; effects on the economic outlook of the United States; and policy options moving forward.
The massacre at a gay nightclub in Orlando—the worst act of terrorism on American soil since the attacks of 9/11—had barely ended when the debate over its significance began. As usual, the political class divided into competing camps, with liberals predictably claiming that the real issue is gun control and conservatives just as predictably claiming that the real issue is radical Islam. There wasn’t even agreement over whether this was a hate crime or an act of terrorism. (Why couldn’t it be both?)
In the years since the global financial crisis of 2008 engulfed the world and the United States fell into the Great Recession, the panic has subsided and Western economies have recovered to varying degrees.
We know what President Obama thinks of Islamism, but how does he view Communism and the Cold War? Obama’s misunderstanding of Islamism may be matched by his misunderstanding of Communism and of America’s role in the 20th century, as Elliott Abrams explains in National Review.
Almost seven years after the Great Recession officially ended, the U.S. economy continues to grow at a sluggish rate. Real wages are stagnant. The real median wage earned by men in the United States is lower today than it was in 1969. Median household income, adjusted for inflation, is lower now than it was in 1999 and has barely risen in the past several years despite the formal end of the recession in 2009.
Ruth Porat has taken an unusual path to the tech world. Before becoming the chief financial officer at Google in May 2015 (and then at Alphabet, Google’s new parent company, a few months later), she held the same post at Morgan Stanley, where among other roles she worked closely with the U.S. government to sort out the troubles at the insurance corporation AIG and the mortgage-financing agencies Fannie Mae and Freddie Mac during the 2008 financial crisis.
Despite boasting the most powerful economy on earth, the United States too often reaches for the gun instead of the purse in its foreign policy. The country has hardly outgrown its need for military force, but over the past several decades, it has increasingly forgotten a tradition that stretches back to the nation’s founding: the use of economic instruments to accomplish geopolitical objectives, a practice we term “geoeconomics.”
In the Internet age, the world feels far smaller than it used to. But many Americans still know little about the rest of the world and may be more detached from it than ever. Such a lack of awareness is, in certain respects, understandable. Once the Cold War ended, some 25 years ago, Congress, perhaps out of a false sense of security, cut the foreign affairs budget, which led to the closing of some U.S. overseas posts.
Few things make professors happier than thinking that the public has finally begun to agree with them. No surprise, then, that John Mearsheimer of the University of Chicago and Stephen Walt of Harvard open their article in Foreign Affairs—in which they propose a new “grand strategy” for the United States—by observing that “[f]or the first time in recent memory, a large number of Americans” are saying they want the same thing.
When Hillary Clinton’s career as a lawyer first drew media attention during the 1992 presidential campaign of her husband, Bill Clinton, she mused that she could have skipped law practice to stay at home and bake cookies. The comment led to a now-famous cookie bake-off between Clinton and Barbara Bush, which the upstart Arkansas governor’s wife handily won.
On January 28, 2009, barely a week into his presidency, Barack Obama met with the U.S. military’s top generals and admirals on their own turf, inside “the tank,” the Joint Chiefs of Staff’s conference room on the second floor of the Pentagon. A senior official recalled the new president as “remarkably confident—composed, relaxed, but also deferential, not trying to act too much the commander in chief.”
Authors: Eliot A. Cohen, Eric S. Edelman, and Ray Takeyh
The nuclear deal that the United States and five other great powers signed with Iran in July 2015 is the final product of a decadelong effort at arms control. That effort included sanctions in an attempt to impede Iran’s quest for a nuclear weapons capability.
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