"For five years, the United States economy has been expanding at a steady clip, the stock market soaring, the headlines filled with talk of recovery. Yet public opinion polling shows most Americans still think the economy is pretty miserable."What might account for the paradox? New data from a research firm offers a simple, frustrating answer: Middle-class American families' income is lower now, when adjusted for inflation, than when the recovery began half a decade ago."
"It's well past time, then, for US policymakers – as well as their counterparts in other developed countries – to consider a version of Friedman's helicopter drops. [...]"Many in the private sector don't want to take out any more loans; they believe their debt levels are already too high. That's especially bad news for central bankers: when households and businesses refuse to rapidly increase their borrowing, monetary policy can't do much to increase their spending. [...]"Governments must do better. Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly."