Friday, June 4, 2010

Robert Reich On The Future Economy

Caption: This graph compares relative job loss during this recession and the last dozen or so. We're the red line that's forming the bottom of the chart. Even more good news comes by way of that dotted red line; once the census is over, that's where we'll be.

Image credit: Calculated Risk. (Check out that link for an explanation of what the chart is likely to mean.)

There's at least one other person who thinks that we're headed for more bad economic times, but I'm pretty sure no one's listening to him, either:

We’re falling into a double-dip recession.

The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. (The vast bulk of new jobs in May were temporary government Census workers.) But at least 100,000 new jobs are needed every month just to keep up with population growth.

In other words, the labor market continues to deteriorate.

The average length of unemployment continues to rise – now up to 34.4 weeks (up from 33 weeks in April). That’s another record.

More Americans are too discouraged to look for a job than last year at this time (1.1 million in May, an increase of 291,000 from a year earlier.)

Of the small number of jobs created by the private sector in May, many came from temporary help services.

Which is one reason why the median wage continues to drop.

Why We’re Falling Into a Double-Dip Recession

It's possible that his lesson in Idiot Savant Economics helped Robert Reich see this coming, I suppose, but I'm pretty sure he's smart enough to figure this one out on his own. That means he's smart enough, for all practical purposes, that neither the White House nor Congress gives a rat's ass what he thinks. They'll continue to believe Larry Summers and his merry band of dipsticks until the economy has hit bottom and just about everyone who isn't a lobbyist for Big Finance is unemployed. I certainly see no sense of urgency back in La-La Land about what's going on.

Their economy is doing just fine.

I've said it before, and I'll say it again, the only reason the Democrats aren't already in deep political trouble is that the other party is even more stupid and feckless than they are.

At some point, that will no longer be enough.

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