What A Jobless Recovery Today Means For Tomorrow?

This is an op-ed piece by the president of the United Steelworkers from Pittsburgh (Leo W. Gerard), former CEO of AT&T Broadband (Leo Hindery), and former Michigan Senator Don Riegle. They basically represent unions, big business, and government, in that order. They believe that we are in a “jobless recovery” and together developed and proposed a three part idea which they felt would create jobs, that they hoped would gain the attention of the Obama administration. However, they now have this to say about the administration’s apparent view of the economy (from The Huffington Post):

It’s almost as if the administration is opting for a rose-colored-glasses PR strategy rather than taking a hard-nose look at actual consumer and employment figures and their trends, and modifying its economic policies accordingly.

It is still very clear to the three of us that the economic stimulus plan will not move the country toward anything approaching full employment and, most important, that the jobless recovery has already started “feeding back” on itself, as evidenced by four key indicators:

First, consumer spending, despite the benefits from millions of $500 stimulus checks and the “cash-for-clunkers” program, remains in a very deep malaise…

Second, the percentage of U.S. homeowners who owe more than their house is worth will nearly double to an almost unbelievable 48% in 2011, from the already numbing level of 26% today…

Third, the continuing trade deficit, which is currently around 2.2% of GDP, subtracts more from the demand for American-made goods and services than the stimulus plan adds…

Fourth, even if one accepts GDP growth as the primary measure of economic vitality, which notably we don’t, the so-called “recovery” of GDP in the second quarter was mostly due to one-time accelerated government spending in general and on transfer payments, and the expected GDP “recoveries” in the third and fourth quarters will be just as questionable…

Read the rest:



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