A Lusty, Lopsided Recovery

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After a year of expansion, the U.S. economy has regained a surprising amount of momentum, but the progress has been spotty and fundamental difficulties remain. Says Philip Caldwell, chairman of Ford Motor: "The federal budget deficit and the trade deficit are basic problems threatening the country's long-run health and the standard of living for all Americans." Unless the President and Congress deal with those problems, they cannot be sure that the economic recovery will develop from its lusty infancy to a ripe old age.

By Charles P. Alexander.

Reported by Jay Branegan/Washington and Raji Samghabadi/New York