Bernanke says monetary policy is not a panacea for economic growth and recovery. Likewise, tax policy does not seem to get the job done, as we have many and generous loop-holes in our tax code. Also, we have tax cuts and tax incentives for almost everyone, especially the “favorites”; many of who finance our political campaigns. These standard medicines don’t seem to work anymore. Apparently, society has built up immunity to them. They have become more like welfare and less like incentives to growth.
Maybe we are looking in all the wrong places. Maybe we have cultural problems. Maybe we have work ethic problems. Maybe we have imaginative and creative problems. Maybe we have family problems. Of course, we know we have education problems.