The Third American Jewish Revolution

Over the past several years, we have been witness to the unraveling of the global economy and more directly the American enterprise. This economic “tsunami” has led to a fundamental reordering of the structural and financial well-being of many core institutions. In particular, this upheaval is having a profound impact on the American Jewish community.

Harvard economist Kenneth Rogoff suggests that America is experiencing its “Second Great Contraction” (the first involved the Great Depression). In such an economic setting, output, employment, debt, housing prices, and equity can take four or more years to recover. He wrote recently: “The difference between ‘contractions’ and ‘recessions’ is that the former last much longer and requires a different medicine to cure the economy.” Rogoff sees the fiscal crisis today as more reflective of the Depression than a traditional recessionary cycle. This school of economic thought holds to the view that government must find an alternative solution than simply introducing short-term stimulus spending.