Here's what the other half of the economics blog Marginal Revolution says in his new book published by TED:
Unemployment, fear, and fitful growth tell us the economy is stagnating. The recession, however, is just the tip of iceberg. We have deeper problems. Most importantly, the rate of innovation is down. Patents, which were designed to promote the progress of science and the useful arts, have instead become weapons in a war for competitive advantage with innovation as collateral damage. College, once a foundation for innovation, has been oversold. We have more students in college than ever before, for example, but fewer science majors. Regulations, passed with the best of intentions, have spread like kudzu and now impede progress to everyone's detriment [the worst he seems to claim is limits on immigration]. Launching the Innovation Renaissance [link] is a fast-paced look at how we can accelerate innovation and build a solid 21st-century economy.