Posted on 08/18/2009 3:24:52 AM PDT by Son House
According to their forecast, the unemployment rate will be at 10 percent through 2011. Three years after that, the jobless rate will have dropped only to 8 percent. And a decade from now, that rate will still be floating above 6 percent.
Diane Swonk, an economist with Mesirow Financial, said she tends to agree with such bleak forecasts of jobless recoveries.
"This is the exact debate that's going on in economics today," she said. "Because we have a severe recession, will we get a nice bounce? Or are we stuck in a period of slow, muted recovery, particularly in the labor market?"
In terms of job losses, the current downturn ranks alongside the worst post-war recessions -- the bad old days of the Nixon-Ford era and President Reagan's first two years in office.
Both of those recessions ended with sharp, and uplifting, drops in unemployment within a year's time.
But the authors of the Kansas City report say the milder recessions of 1990-to-1991 and 2001, both followed by recoveries where unemployment continued to rise, better predict what lies ahead.
One trouble spot is the increased use of temp workers and outsourced labor in the last two decades.
"It used to be that as we're coming out of a recession, companies could go back to the short-term financing that they used to use, to pay payroll. Now they can't do that ... because of the credit market situation that we're in," Swonk said.
The authors of the forecast also studied five major foreign economies. The comparison found that in Spain, Norway, Finland, Sweden and Japan, high unemployment tends to stick around even after a recession has ended if a banking crisis is involved.
(Excerpt) Read more at foxnews.com ...
Wasn't there some guy named "Carter" back in that era as well? Remember stagflation and the misery index?
Job Market Could Lag Behind for Years, Study Forecasts ~ which is better than had initially been projected ~ or at least that’s how the headline will read while Dims rule the WH.
We are in this problem because rather than let the last couple of recessions happen as normal, the Fed patched things up with Monopoly money. Guaranteeing that when a recession finally hit, it would be a doozy.
The bad news is that the democrat agenda is so evil and destructive that the economy has no chance of recovery and many decent real Americans (along with a majority of obama-voters) will be hurt during obama’s four years in our White House.
The good news is that the democrat agenda is so evil and destructive that obama’s incompetence will be obvious to all real Americans (along with a majority of obama-voters) and we will only have to suffer through four years of obama in our White House.
FREEZE ALL OF "THEIR" PAY and BENEFITS!
Amen.
Sadly, the Democrats have made the country hostile to business and industry. I see no reason why anyone with capital would put it to work in the USofA.
For the first time in my life I’ve moved the majority of my investment assets offshore.
JOBS WILL LAG BEHIND hussein’s LAST DAY FOR MANY YEARS... IT WILL TAKE YEARS TO ERADICATE THE DAMAGE THIS muzzie commie HAS DONE!
LLS
Government growth is inversely proportional to job growth.
It was never intended to stimulate anything but DemocRat votes. Porkulous is nothing more than a massive vote buying scheme. That's why most of it won't be spent until 2010, the same year as the midterm elections....
But I thought the proponents for the Stimulus proclaimed that jobs were the main purpose of and for its passage? /s
Someone send a memo to Barry asking him about those 600,000 jobs he promised would be created this summer, kkthx. =.=
That's exactly why the markets and the job market bounced back after 9/11.
It was theft to give money to O’s cronies to buy votes and just outright theft. RINO Cantor is saying it is not working as planned. No it was a total scam Cantor.
Looking for a job?
This thread has been updated.
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