It's the economy, stupid.

Responding to a Paul Krugman column, Amity Shlaes recounts some historical facts about why the economic recovery that looked like it might be on the way in 1937 collapsed into three more years of Great Depression. Hint...it had to do with new taxes, new regulations and a President who seemed to be looking for an even larger expansion of government. One interesting political consequence of all of the above was the smashing return of the GOP in the midterm elections of 1938. Alas, for those seeking historical parallels, President Roosevelt went on to win re-election in 1940. Of course, Barack Obama doesn't strike me as a politician or a leader anywhere near the skill level of FDR.

Thomas Friedman says our global economic growth model is in crisis and is unsustainable. Of course, we have heard this line of reasoning many times over the last few decades.

Martin Feldstein says the state of the U.S. economy right now is worse than you think, and he has the numbers to prove it.