This weak record on growth is proving disastrous for ordinary Americans. Per capita income remains below its 2006 level, while wage-based incomes are declining. It is little surprise, then, that adjusting for inflation, retail sales last month contracted at nearly a 5 per cent annual pace, while the proportion of Americans living in poverty soared. This is a modern day depression, only this time soup lines have been replaced by unemployment cheques.

Facing these challenges, businesses are trying to enhance productivity, not create jobs. Polls show that business leaders are growing increasingly pessimistic. In the past six months a third of companies have delayed or cancelled plans for capital spending.