Incompetents Managing the Economy Insist On High Unemployment
Anyway, repetitio est mater studiorum. But if repetition is the mother of learning the glaring exceptions are the factually challenged, deliberately myopic and woodenheaded Obama administration and a Democratic majority Congress who refuse to learn.
Dean Baker offers another reminder at The Guardian:
"Friday's US jobs report caught most economic analysts by surprise. After touting the strength of the recovery for months, they had to come to grips with the fact that the economy just is not creating very many jobs.
"If the temporary jobs generated by the census are pulled out of the count, the economy created just 20,000 jobs in May. The average rate of growth of non-census jobs over the last three months has been just 130,000 a month, only slightly faster than the growth of the workforce. At this rate of job growth, it will take decades, not years, to get back to normal levels of unemployment. It's time that we stop the happy talk about recovery and get serious about the country's economic problems.
"Once again, the reason for this downturn is very simple, even if most of the country's top economists were (and are) unable to see it. We saw an $8tn housing bubble and a somewhat smaller bubble in non-residential real estate collapse. This bubble had been driving the economy prior to the recession.
"......Consumers are not spending for the same reason that homeless people don't spend: they lack the money.
"The $1tn plus in lost demand is the cause of the downturn and there is no obvious basis for replacing it....
".....May's weak job report should make the recovery's weakness so evident that even an economist can't miss it. At this point, we are presented with the option of taking steps to further stimulate the economy such as an extensive jobs programme, or facing years of unnecessarily high unemployment.
"Unfortunately, the deficit cultists are making it likely that the country will follow the path of high unemployment. This will mean an enormous amount of unnecessary pain for millions of workers and their families. These people will be out of work not because they lack the necessary skills or don't have a willingness to work – they were working just two years ago.
"No, today's unemployed are out of work because the people who are managing the economy don't have the skills necessary to do their job. And the incompetents who are managing the economy are all getting very well paid for their work. That is not good economic policy."




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