UNDERUTILIZED OR OVERPRICED RESOURCES?: Fed Governor Doubts Program - WSJ.com
What seems to be unduly glossed over (or totally ignored by Bernanke, et al) is that certain inputs - be they labor or capital are being mispriced or having their prices distorted by fiscal policies coming out of Washington and state governments.
Thus, the comment "We see an economy which has a very high level of under utilization of resources and a relatively slow growth rate" may not in any way be 'underutilizing' what are 'overpriced' assets.
The country and its policy makers should be talking about how taxes and entitlements and the drug laws (amongst others) are providing distortions that hurt competitiveness and entrepreneurial incentives and create major global political upheaval (esp. the drug laws).
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