Dr. Gloom vs. the Good-Time Guys

In a week of rosy economic news, Feldstein 's warnings rouse ire

For the nation, the economic news last week was all good. Unemployment was down sharply in November, to 8.4%; the Dow Jones industrial average hit an alltime high. Around the country, retailers reported booming Christmas sales, and the leading economic indicators were up for the 14th consecutive month, the longest sustained recovery since 1975-76 (see ECONOMY & BUSINESS).

But at the White House, the upbeat mood was marred by some nagging warnings from an in-house Cassandra. For weeks, Martin Feldstein, chairman of...

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