The Douthat bubble

Ross Douthat claims that too much pessimism in an economic downturn can be as bad as too much optimism in a bubble.

True, at one level.

But, not at another, not at all.

To riff on Tolstoy, bubbles are all alike in their giddiness, but burst bubbles each have their own separate sadness.

Then, of course, you have Douthat not telling that Reagan ended the 1979-82 double dip recession at the price of big tax giveaways and expanding income inequality. Per the unique pain angle, you also have him ignoring that the mild recession at the end of Poppy Bush's presidency in no way compares to either 1979-82 one or the current one.

As for the competitive advantages he says the U.S. has, not so fast.

Were it not for immigration, the U.S. would be at zero population growth (at best), just like some of "old Europe." In fact, it might not be but a smidge above zero even counting legal immigration in the mix.

The EU isn't all follies.

While Russia, as well as Japan and parts of the EU, may face demographic issues, Brazil and India certainly don't. (Well, their growth rates remain high enough they may face demographic issues other way.)

Anyway, Douthat is somewhat right, but not as right as he'd like to make us think he is.