In spite of the continued decline in the labor force, I would argue that it is quite possible not only to maintain the current level of per capita income but also to realize a new stage of economic development, if technological progress accelerates and/or economic efficiency is improved.
Last week, the first use of TARP funds was announced. In particular, the Treasury announced a voluntary capital purchase program, and nine of the nation’s largest financial institutions have agreed to participate. The program is open to financial institutions of all sizes.