The great economic debate of the past couple years has been the Federal Reserve's attempts to prop up the economy as Congress has gone AWOL. Now, after priming the pump as much as possible, the Fed is offering a cautious vote of confidence in a recovering economy, declaring that the era of quantitive easing will begin to come to an end. Tapering is in. Tampering is out.
The markets are not swooning. Stocks were up on Wednesday as the Dow jumped nearly three hundred points. Instead, they have probably already priced in the move. Bonds remain strong. The dollar is relatively robust, though it has been dropping against the British pound.
But larger and more fundamental questions continue to loom over the country: Is the American dream coming to a close? Who's getting the benefits of the recovery? Can the political system recover from the polarization it's been experiencing?
In the Wall Street Journal, William Galston, who has been writing a column for the paper in recent months, offers a highly insightful look at the problems America faces. Galson notes that America really faces a crisis of confidence. Americans are not confident about many things. A recent Bloomberg survey, he notes, indicated that "individuals do not have an equal chance of getting ahead." His own organization, No Labels, has conducted a poll that indicates that only 38 percent of Americans think the country's best days are ahead of it: "Only 26% believe that the next generation of Americans will be better off than this generation and fully 62% believe the coming generation will be worse off."