Are We About to Repeat the Mistakes of 1937?

Friday's jobs report clearly indicates that the economy remains weak, yet the pressure to reverse stimulus and begin tightening fiscal and monetary policy has become overwhelming.

The Federal Reserve has already ended its policy of quantitative easing, and many of its regional bank presidents are demanding higher interest rates to forestall inflation. Republicans and Democrats in Congress appear to agree that large spending cuts must accompany a rise in the debt limit, which will be hit on Aug. 2 if Congress doesn't act.