Subject: What economic recovery?

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CHART OF THE WEEK Per capita net worth plummets more than $100,000

What economic recovery?

The White House lowers its growth forecast. John Makin: The White House is lowering its 2013 growth forecast from 2.6% to 2.4%, assuming the dreaded sequester is ended. Net worth is dropping. Kevin Hassett: Accounting for federal debt, net wealth had dropped all the way to $62,322 per person [from $170,647 in 2007]. Jobs are gone (and there are charts to prove it). Nicholas Eberstadt: There has been no recovery whatsoever in the jobs market since the Great Recession. The employment ratio today appears to be stuck at the same awful level recorded in early 2010.

The Feds next steps

Chairman Bernanke assured markets on Wednesday that QE will continue until the economy improves. This marks the end of taper talk for now, exactly what John Makin predicted would happen in his Economic Outlook this May. Who will be the next Fed chair? Jim Pethokoukis: If Team Obama thinks Summers the best choice on merit, his nomination potentially invites a nasty political fight that brings up all sorts of issues. Larry Summerss hawkish advantage is overrated. Abby McCloskey: It is possible, and even extremely likely, that Summers would continue the Federal Reserves current policies.

Before passing immigration reform

The House needs the full picture. Andrew Biggs: [CBO and SSA cost estimates are for] the next 20 years, a period during which the typical new immigrant -- who is around 30 years old -- will pay taxes but will probably not collect benefits. In following years, of course, the bill comes due.

The game plan(s)

Tax reform. Phil Gramm: Don't compromise on things that will only make rational reform harder in the future. Saving conservatism. Mike Strain: Proceeding with a spirit of community would help conservatives formulate and support better policies. Fixing the debt. Ed Conard: Any chance of putting the United States on a sustainable path rests, not on a balanced budget amendment, which is too extreme to ever see the light of day, but rather on an amendment that outlaws mandatory spending increases.

Passing Corker-Warner. Phil Swagel: Holding out for the unattainable but theoretically perfect housing finance system thus cements in place the nationalized outcome least favored by proponents of a marketbased approach. Stopping Corker-Warner. Alex Pollock: It seems more logical to simply drop the guarantee. Peter Wallison: The scheme envisioned in Corker-Warner will work for a while, as long as housing prices keep climbing....Eventually, it will all come apart, as it did in 2008.

Around the world

The ECB did good. Desmond Lachman: One has to welcome the European Central Bank's bold break with tradition last week by announcing that it plans to keep interest rates low for an extended period of time. Pack your bags, Cyprus. Desmond Lachman: Before summarily dismissing [leaving the Euro], Mr. Anastasiades might want to consider the very high economic and social cost that Cyprus would bear by remaining bound to the euro mast.

In other news
D.C. lawmakers voted to raise the living wage to at least $12.50 for large retailers this week, causing Wal-Mart to pull plans on opening three new stores in the district. From the AEI archives. Kevin Hassett and Michael Strain (2013): Facts clearly demonstrate that raising the minimum wage is a bad idea. Kevin Hassett (2005): The gains to Americans from Wal-Mart's lower prices are extraordinary Wal-Mart directly and indirectly saved the average U.S. household $2,329 in 2004. Everyone wants a piece of the apple -- I mean, federal -- pie. Stan Veuger: It seems quite unnecessary for the federal government, for example, to subsidize food stamps for Connecticut residents, as Connecticut is perfectly capable of funding those itself.

Mark your calendar

7.15 Retail sales for June are published 7.16 AEI Event: Connecting the American classroom: A student-centered E-Rate program 7.17 AEI Event: Pharmacy to the world: India and the global prescription drug trade 7.17 Bernanke speaks before the House Financial Services Committee 7.18 Bernanke speaks before the Senate Banking Committee 7.18 Jobless claims released 7.31 AEI Event: International conference on collateral risk: Moderating housing cycles and their systemic impact @AEIecon Sign up for a weekly copy of the LEDGER here. Read more from the American Enterprise Institute economic policy team at www.aei.org. Questions or comments about what you read? Contact Abby at abby.mccloskey@aei.org. American Enterprise Institute for Public Policy Research | 1150 Seventeenth Street, NW, Washington, DC 20036 | 202.862.5800 | www.aei.org If you were forwarded this message, click here to subscribe to AEI newsletters. Click here to unsubscribe or manage your subscriptions.