The celebration of the stronger employment numbers is misplaced. The drop in the unemployment rate is due almost entirely to people leaving the labore force. Further the employment gains being celebrated are less than all but a few months in the late 1990s – and we have 10% more people now.
It has been argued by some that austerity can aid recovery. This assertion is argued from both sides in this Great Debate. Dean Baker of the Center for Economic Policy and Research says that austerity can produce growth but not in the current circumstances in the U.S. Ben Broadbent and Kevin Daly of Goldman Sachs have argued that austerity can lead to recovery from the Great Recession.